In Bitcoin (BTC), it is debatable whether traditional technical patterns like triangles and diamonds have value. During the Bitcoin (BTC) bear market, many diagonal formations were deceiving, hurting both bulls and bears.
If there is a Bitcoin (BTC) and crypto rally in the near future, the triangle formation in Figure 1 should create a move to the upside. If that happens, it will be evidence that something has changed for the better. If nothing happens, or Bitcoin (BTC) goes down from here, then the “crypto winter” theory may spread.
Corrections can occur in price or time — meaning a market can sit through an extended consolidation period that last weeks or months. In the crypto community, these periods are simply called “winter.” There is an argument that 2019 could be a crypto winter mirroring what happened in 2015 (Figure 2).
Bottom Line: At this time, we are not subscribing to the winter view for Bitcoin (BTC). But we think readers should know the view is out there.
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