Explaining the Ascending Triangle Pattern:
• Ascending Triangle Structure:
The pattern forms as price action is squeezed between a flat overhead resistance (~$101,235) and a rising support line (starting around $97,995 and moving upwards). Each subsequent low is higher than the previous one, indicating increasing buying pressure, while sellers consistently appear around the same resistance level.
• Anticipating a Breakout:
As the price moves closer to the apex (the point where resistance and support lines converge), volatility often declines. If buyers gain momentum and volume increases, a breakout above $101,235 could propel price towards $103,000 and beyond (e.g., $105,000 to $110,000 in the longer term).
• Risk Management:
If the price fails to break above the key resistance and instead falls below crucial support (like $97,995) on high volume, it can signal a weakening uptrend. Setting a stop loss below the rising support line is prudent to protect against downside risk.
Note: This is an illustrative analysis (Not Financial Advice - NFA). Always verify with real market data, employ proper risk management, and consider multiple sources before making trading decisions.
