What Is Descending Triangle?
A descending triangle is a bearish chart pattern with a horizontal support line (the same low being tested repeatedly) and a descending resistance line (lower highs). The pattern shows that sellers are becoming more aggressive, willing to sell at progressively lower prices, while the same support level absorbs buying interest.
How Descending Triangle Works
Each test of horizontal support absorbs buy orders, weakening the level. The declining resistance shows sellers increasing pressure with each bounce attempt. When the support finally breaks, the accumulated sell pressure drives a sharp move down. The target is the height of the triangle projected downward from the breakdown.
Why It Matters for Traders
Descending triangles in crypto often lead to waterfall declines because the breakdown triggers both stop-losses and new short entries simultaneously. The pattern is most reliable on the daily and weekly timeframes. Traders can short the breakdown with a stop above the descending resistance line — providing a well-defined risk level.
