Bitcoin Reportedly Awaiting Triangle Breakout
Bitcoin’s price is reportedly largely unchanged on the day. More importantly, it seems to be building for a strong exit, especially when compared from the weeks-long period of consolidation. Here’s everything about the world’s leading cryptocurrency and its value movements recently.
BTC’s Numbers This Month
The aforementioned digital currency hits high, particularly more than $4,100 earlier this month. This happened way before it lowered to about $3,500. The latter figure, in particular, is where it became a trap for the crypto, giving it in a very tightening trading range.
The bears have reportedly been persistent in failing to keep prices below the $3,500 mark. This only weakened the bearish case, which was recently put forward by the significant drop of 9 percent seen earlier this month.
Basically, this strong support level is believed to be the formation of a descending triangle pattern, which can be seen over the past 2.5 weeks. Also, it clearly suggests an upper edge of nearly $3,600, with its base lurking around the $3,500 level.
Chances of a Bullish Breakout
The possibility of a bullish breakout is quite possible – and the chances of it happening appear to be high. This is due to the fact that the sluggish price action defines a narrative in which sellers have run out of steam. Moreover, prices are having difficulty moving after the withdrawal of Cboe’s exchange-traded fund (ETF) proposal, which took place just recently.
It should be noted that the trading range from last week – particularly the one that is spread between the price low and high) was standing close to the three-month low. The latter, in particular, seen a figure of $45.17, which got registered on January 12. This was reportedly the fourth sub-$50 range in terms of trading this month.
As far as the three previous occasions are concerned, the trading range was successful in widening its branches, most especially on the day after. So if history is going to repeat itself, which is usually the case, then people may finally witness some movements in the next day or so.
The Triangle Breakout
The convincing break of more than $3,600 would certainly lead to a triangle breakout. Eventually, this would open the doors to a high of $3,775, as per the official reports. There is a violation, though, and this would soon expose the psychological hurdle that would end up in the mark of $4,000.
Of course, the descending triangle is popularly known as a bearish continuation setup. And, in most cases, it would end up accelerating the already preceding move.