- Bitcoin lags triangle breakout amid widespread bull hibernation.
- The short-term technical picture remains bearish for Bitcoin despite the consolidation above $8,700.
Bitcoin current trend is mundane and annoying for day traders. The consolidation comes after a bearish 24 hours where Bitcoin dived from highs above $9,000 to form a new support above $8,500. Correction to the upside is hampered at $8,800, besides the dominating moment has a bearish bias.
The four-hour chart shows the price way below the moving averages. The 50 MA is holding the ground at $9,048.92 while the 100 MA at $9,167.32. The widening gap between the moving averages signifies a stronger bearish grip likely to last through the incoming sessions on Tuesday.
The Symmetrical Triangle Pattern
Bitcoin price is trading within the confines of the apex of the symmetrical triangle pattern. A couple of scenarios are possible with the formation of such a pattern. First, a triangle resistance break could eventually place Bitcoin in a trajectory towards $10,000. The second scenario which sends jitters down my spine I jot down this analysis is that a triangle support break could sent Bitcoin down the rabbit hole to $7,200.
BTC/USD 4-hour chart
Following the false breakout over the weekend that led bulls into a bull trap at $9,200, buyers are choosing to stay in hibernation. The low trading activity is likely to last longer until the bulls are confident that a push towards $9,000 will initial the next bullish phase to $10,000.
Meanwhile, the RSI shows that Bitcoin’s recovery will take more than just the right technical levels. Bitcoin needs a catalyst to stir action and increase buyers’ confidence. For now, the best the bulls can do is to hold the price above $8,700 and fight to regain the ground above $9,000.
Bitcoin Technical Levels
Spot rate: $8,728
Relative change: +8.4
Percentage change: 0.1%
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John is a talented writer with over two years of experience actively contributing to the cryptocurrency industry by providing credible, interesting and easy to read the content. His main focus is on cryptocurrency price analysis and industry news coverage. Lets follow him on Twitter at @jjisige