The action in Bitcoin and GBTC are playing out just as predicted earlier this month. We discussed how there is validity to some of the Classic Chart patterns. In this case were saw what is called a 'Descending Triangle'.
Bitcoin found support around 6,600. There was support here because it was the low in February and April. That support has broken. We predicted that it would break because the pattern of 'Three Lower Highs' demonstrates that the sellers have become more aggressive than the buyers. As time passes the sellers are willing to accept lower prices.
GBTC seems to be breaking support around the $10.25 level. This level was support because there was resistance there in September and November, and support in February and April.
So remember, there is validity to some of the classical chart patterns that are used by technical analysts. But what is more important than mindlessly memorizing the names of chart patterns is to understand how they illustrate the supply and demand dynamics that are occurring in financial markets. In the case of a Descending Triangle, it is an illustration of how as time passes sellers become more aggressive while the buyers are patient and content to stay at their price levels. The forces of supply are overpowering the forces of demand. That is why this is a bearish pattern.