Trading Bitcoin: See This Chart Before You Buy the Dip

Bitcoin/USD 1 Hour

The US Stock market continues to crash with the Dow Jones Industrial Average down another -9% today. However, Bitcoin has remained relatively flat since the BitMEX flash crash last week. Currently, Bitcoin is in a symmetrical triangle formation. In classical technical analysis, a symmetrical triangle is confirmed with decreasing volume. Furthermore, this decreasing volume and stagnating price action indicates market indecision. While symmetrical triangles are not considered to be reversal formations, they will typically break to the direction of the trend. Therefore, this symmetrical triangle is likely to break to the downside and test new lows. That being said, it is promising to see Bitcoin holding its own in the midst of a fire-sale in the equity market.