Bitcoin likes to consolidate in triangles big and small in reaction to aggressive moves in either direction. Triangles are continuation patterns, and thus tend to break out in the direction they were entered.
Hint: You can identify which direction the triangle was entered from based on the strength/weakness that precedes the movement that forms the base of the triangle and how it fits into the encapsulating trend.
In this case, the direction seems clearly up, though we can't be certain yet that a triangle is forming. It seems likely though.
Hint: You can identify which direction the triangle was entered from based on the strength/weakness that precedes the movement that forms the base of the triangle and how it fits into the encapsulating trend.
In this case, the direction seems clearly up, though we can't be certain yet that a triangle is forming. It seems likely though.
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Well, learning experience here. This turned out to be a symmetric triangle, which can break both ways. It may have broken up had it not been for the BTCe FUD, but the point is in most cases it's probably wise to de-risk when in a triangle or just scalp from the extremes.