$BTC is forming a falling channel. I'd like to see an upside breakout, and for now the bulls are still fighting for it. The weekly candle closed above the 200-week moving average (MA200), so the setup still has a good chance to play out.
Falling Channel
Minimum of 5 touches across both trendlines (for example, 3 on the upper line and 2 on the lower line).
Breakout direction:
Historically, the pattern breaks to the upside in 68% of cases (against the short-term downtrend).
Volume confirmation:
On the breakout day, trading volume should be above average. According to Bulkowski, breakouts on low volume should be ignored.
Price behavior after the breakout (Pullback):
In 62% of cases, price retests the broken trendline before continuing higher.
Target achievement:
The classical target (the height of the channel) is fully reached in only 47% of cases. Bulkowski recommends taking partial profits earlier at the nearest major resistance levels.
Falling Channel
Minimum of 5 touches across both trendlines (for example, 3 on the upper line and 2 on the lower line).
Breakout direction:
Historically, the pattern breaks to the upside in 68% of cases (against the short-term downtrend).
Volume confirmation:
On the breakout day, trading volume should be above average. According to Bulkowski, breakouts on low volume should be ignored.
Price behavior after the breakout (Pullback):
In 62% of cases, price retests the broken trendline before continuing higher.
Target achievement:
The classical target (the height of the channel) is fully reached in only 47% of cases. Bulkowski recommends taking partial profits earlier at the nearest major resistance levels.
