Bitcoin has not been able to recover to last week’s highest levels, around $39,000. Following the humorous ‘breakup’ tweet from Elon Musk that suggested that he had parted ways with Bitcoin, the price sunk to $35,000.
The weekend session has been chiefly sluggish, with the price action unable to gain momentum toward $40,000. The prevailing sideways has many analysts looking at the long-term trend instead of the short-term outlook, which has not yielded much for some time.
Meanwhile, the bellwether cryptocurrency teeters at $36,000 while bulls face immediate resistance from the 50 Simple Moving Average and the 50 SMA on the four-hour chart. It is apparent that rising beyond these barriers would challenging and may continue to delay the upswing.
Bitcoin dances within a potentially massive symmetrical triangle pattern
The 4-hour chart shows the formation of a symmetrical triangle pattern. The chart pattern is formed by converging a couple of trend lines linking sequential peaks and troughs. Generally, the trend lines are supposed to cross at an approximately equal slope.
A period of consolidation takes place before the triangle makes way for the next significant move, either a breakout or a breakdown. Realize that a breakdown occurs from the ascending trend line and marks the beginning of a downtrend.
On the other hand, a breakout happens at the descending trendline and identifies the start of a bullish trend. Symmetrical patterns tend to have precise price targets for the breakout or breakdown, mainly measured from the highest point to the pattern’s lowest point.
BTC/USD four-hour chart
The pattern on the chart above shows that a 35% breakout could swing Bitcoin to highs marginally above $50,000. Such a move will likely trigger massive buy orders as investors acclimate to the bull run starting all over again.
Bitcoin intraday levels
Spot rate: $36,340
Support: $35,000 and $33,000
Resistance: The 50 SMA, the 100 SMA and $39,000