Since the 1 year high at $504 on November 4, price has been on a decline, surprising many who expecting an aggressive bull run, however. Corrections are part of market cycles, and necessary, like the current price action.
The past 3 weeks have been a correction of the parabolic move up from $ 240. (3)(4) was a flat sideways level after a breakdown, moving sideways for some days before breaking down again to (1) at $ 300 – a significant support level. Testing this level and holding, forced price sideways, in a triangular fashion while still respecting this level. It closely resembles the triangle at (3) (4), only differing in its magnitude. Price is now at $ 321, as it converges towards a tipping point. Will this triangle break up or down?
This support level is solid, telling from multiple attempts to break it over the whole of 2015. Bitcoin charts have plenty of triangle patterns that are known to be terminal – including this one, it only is