The ongoing sideways movement of Bitcoin’s price for the past three weeks has led to a sense of uncertainty in the cryptocurrency market. Nonetheless, the daily chart displays a coin price resonating between two converging trend lines, indicating the formation of a symmetrical triangle pattern. This formation is frequently used to predict potential outcomes for BTC in the upcoming week.
In general, the symmetrical triangle pattern acts as a continuation pattern, favoring the existing trend once the price surpasses the trendline barrier on the respective side. With the current consolidation in Bitcoin price floating above the 23.6% Fibonacci retracement level, it suggests that the overall market trend leans toward being bullish. However, Bitcoin’s intraday trading volume has decreased by 30.5%, standing at $12.06 billion.
As of now, Bitcoin’s price is trading at $29,035 with a 0.8% intraday gain. Today’s uptick has caused the coin’s price to bounce back from the support trendline of the triangle pattern, which implies that the consolidation is likely to continue for a few more sessions. The sideways trend will persist until the price breaks either of the chart pattern’s trend lines.
Given the triangle pattern’s preference for the preceding price trend, Bitcoin’s price is more likely to break the overhead trendline. A daily candle closing above this barrier would signal the commencement of a bullish recovery and provide traders with an entry opportunity. The breakout candle’s low will serve as a vital support to set stop losses.
Furthermore, this breakout could potentially lead to BTC’s price surpassing the previous swing high resistance of $30,788 and reaching the $34,000 mark—a 15% growth potential. Despite the bullish outlook for Bitcoin, it is essential to consider the possibility of a breakdown below the support trendline, which may invalidate the bullish thesis and extend the correction phase for longer.
Among technical indicators, the Exponential Moving Average (EMA) provides dynamic support from a 50-day period, favoring Bitcoin buyers. The Moving Average Convergence Divergence (MACD) exhibits the falling MACD (blue) and signal (orange) moving sideways above the midline, which adds an additional layer of confirmation for a bullish recovery.
In conclusion, Bitcoin’s current intraday levels display a spot rate of $29,031, a bullish trend, and high volatility. Resistance levels stand at $31,200 and $34,600, while support levels are at $27,000 and $25,000. As the market continues to evolve, it is crucial to conduct thorough research before investing in cryptocurrencies, as the author or publication does not assume responsibility for any personal financial losses.
Source: Coingape
