For almost two weeks, the Bitcoin price has demonstrated a sideways trend, with no evident dominance from buyers or sellers. This indecision in the market leader has resulted in stagnant market conditions, influencing other leading cryptocurrencies to experience a similar sentiment. Nonetheless, when examining the situation on a shorter timeframe, Bitcoin’s flattish price has formed a symmetrical triangle pattern, potentially aiding buyers in regaining buying pressure.
A breakout on either side of the triangle pattern will put an end to the current choppiness in Bitcoin prices. For a proper recovery phase, buyers must surpass the resistance trendline of the channel pattern. As it stands, the intraday trading volume in Bitcoin lies at $7.45 billion, showing a 25.4% loss.
Despite the market’s uncertainty, the BTC prices have continually rebounded from the pattern’s convergence, validating the authenticity of the pattern. Consequently, as the price spread within the triangle starts to tighten, it serves as a sign that a breakout point is approaching. A potential bullish breakout above the overhead trendline, with a 4-hour candle closing above, would indicate the winner of the ongoing conflict and steer the price movement.
The post-breakout rally could elevate the Bitcoin price by 5-6%, reaching the resistance trendline of the channel pattern currently overseeing the correction phase. On the other hand, a breakdown below the triangle support will more likely push the prices to the lower trendline of the channel.
When analyzing the technical indicators, we can see that the Relative Strength Index (RSI) daily slope oscillates around the neutral line, highlighting the hesitancy among traders. As for the Bollinger Band, a breakout from the triangle pattern will challenge the respective Band of the BB indicator, suggesting a momentum trading setup for interested market participants.
Regarding the Bitcoin price intraday levels, the spot rate is at $27,051, with a sideways trend and high volatility. Resistance levels stand at $27,800 and $29,800, whereas support levels are at $26,786 and $25,200.
It’s crucial to keep in mind that the presented information may include the author’s personal opinion and is reliant on market conditions. Conduct thorough market research before investing in cryptocurrencies. The author or the publication is not to be held responsible for your personal financial loss.
Source: Coingape
