If you want to put yourself in front of this megaphone pattern that is forming at $BTC , go ahead.
But if the price breaks above the upper boundary at $83.5K, the move will probably become violent very quickly.
The reason the megaphone pattern is so explosive is because it’s built through repeated traps on both sides.
The price breaks above the previous high, draws in breakout buyers, then reverses.
The price breaks below the previous low, attracts new shorts, then rallies higher.
A repeated sequence of bullish and bearish traps.
Eventually, one boundary gets broken. Everyone who got trapped on the wrong side gets squeezed and helps push the price in the other direction.
Above the pattern’s trendline of $83.5K, that direction is upward.
That’s not a train that I’m willing to stand in front of.
$BTC
But if the price breaks above the upper boundary at $83.5K, the move will probably become violent very quickly.
The reason the megaphone pattern is so explosive is because it’s built through repeated traps on both sides.
The price breaks above the previous high, draws in breakout buyers, then reverses.
The price breaks below the previous low, attracts new shorts, then rallies higher.
A repeated sequence of bullish and bearish traps.
Eventually, one boundary gets broken. Everyone who got trapped on the wrong side gets squeezed and helps push the price in the other direction.
Above the pattern’s trendline of $83.5K, that direction is upward.
That’s not a train that I’m willing to stand in front of.
$BTC
