Bitcoin (CRYPTO: BTC) was trading slightly lower on Tuesday attempting to break down bearishly from an inside bar pattern the crypto has developed on its daily chart.
A break down from Monday’s mother bar could cause the crypto to decline dramatically because it could also cause a break down from a bear flag pattern.
The bear flag pattern is created with a steep drop lower forming the pole, which is then followed by a consolidation pattern that brings the stock higher between a channel with parallel lines or into a tightening triangle pattern.
For bullish traders, the “trend is your friend” (until it’s not) and the stock or crypto may continue to rise upwards within the following channel for a short period of time. Aggressive traders may decide to purchase the stock or crypto at the lower trendline and exit the trade …
Full story available on Benzinga.com