Trapped Bullish Momentum Need Triangle Breakout

The Bitcoin(BTC) traders’ tug of war around the $30000 adds uncertainty to the market. Moreover, this consolidation forms a symmetrical triangle pattern, reflecting a potential rally for BTC. However, can buyers undermine the multiple resistances waiting ahead?

Key points: 

• The BTC price shows eight consecutive red candles in the weekly time frame chart
• The rising RSI slope hints at a bullish breakout from the symmetrical triangle
• The intraday trading volume in the Bitcoin is $16.88 Billion, indicating a 40% loss

Source-Tradingview

On April 22nd, the Bitcoin(BTC) price broke down from a long-coming support trendline, signaling the resumption of the prevailing downtrend. However, the sellers took nearly a week to sustain the price below the $40000 mark. 

Furthermore, the buyers eventually submitted to the rising selling momentum and took the downtrend to its current lower low of $26350. The recent sell-off had sliced through several support levels such as $33000 and $30000.

However, the BTC price has been wobbling around the $30000 mark for the past two weeks, projects the formation of a symmetrical triangle pattern. As a result, the coin price is gradually narrowing within the triangle suggesting an upcoming breakout. 

Therefore, if buyers could breach the overhead resistance, the BTC price would drive 32% high to $40000.

Conversely, a daily candle closing below $26000 would extend the correction rally to the next significant support at$27600.

Technical indicator-

While the Bitcoin price presents a sideways rally, the RSI slope trending higher indicates a rise in the underline bullishness. Therefore, A bullish divergence promotes an upside breakout from the triangle pattern. 

The wide gap between the bearishly aligned VI+ and V- gets narrower, suggesting the buyers attempt to wrest control from sellers. A potential bullish crossover would give additional confirmation to long traders.

• Resistance level- $35000, and $40000
• Support level- $28600 and $267000

From the past 5 years I working in Journalism. I follow the Blockchain & Cryptocurrency from last 3 years. I have written on a variety of different topics including fashion, beauty, entertainment, and finance. raech out to me at brian (at) coingape.com

The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.