Bitcoin Price Analysis: Is Bitcoin Ready for a Breakout Above the Short Term Consolidation Pattern

Bitcoin Price Analysis

Bitcoin Price Analysis: Is Bitcoin Ready for a Breakout Above the Short Term Consolidation Pattern

Bitcoin continues on its sideways trajectory as the market approaches the apex of another short-term triangle pattern. The cryptocurrency has seen a small price increase totaling +0.4% over the past 24 hours of trading as it currently exchanges hands at a price of $6624.

Key Highlights:

  • The long drawn out consolidation period continues for Bitcoin.
  • Traders wait patiently as the market makes it way toward the apex of the triangle.
  • Support levels moving forward; $6639, $6453, $6189, $6032, $6000, $5856.
  • Resistance levels moving forward; $6715, $6774, $6824, $6862, $7000, $7053, $7024, $7510, $7691.

Bitcoin continues on its sideways trajectory as the market approaches the apex of another short-term triangle pattern. The cryptocurrency has seen a small price increase totaling +0.4% over the past 24 hours of trading as it currently exchanges hands at a price of $6627.

Bitcoin remains the dominant ranked cryptocurrency across the entire industry with a total market cap value of $114 billion. The 65-month-old coin has seen a small 4% price increase over the past 90 trading days which could indicate that the bears have run out of steam and the bearish waves are over. The market is still currently trading at a price that is 66% lower than its all-time high price.

Let us continue to analyse price action over the short term for Bitcoin and highlight any potential support and resistance zones.

Bitcoin Price Analysis

BTC/USD – SHORT TERM – DAILY CHART

Bitcoin Price Analysis
Bitcoin Price Analysis Chart Source by TradingView

Analysing the market from the short term perspective above, we can clearly see price action approaching the apex of the symmetrical triangle highlighted above. We can see that the market has been consolidating within the confines of this pattern and a breakout is expected as the market approaches the apex.

We can see that price action had seen a bullish price run when it started from a low of $5856 on August 14th and extended to a high of $7429 on September 2nd, totaling a price increase of 26% from low to high. We can see that after placing the high, the market rolled over and fell until it found support at the short term .786 Fibonacci Retracement level priced at $6179.

Also, read: Ripple Price Analysis: XRP/USD Could Extend ABC Correction

The market has since rebounded and has now been forming the consolidation pattern over the past trading month. The market is currently trading at the support provided by the short-term .5 Fibonacci Retracement level priced at $6639. If the bulls can push price action higher from this level of support, then we can expect immediate resistance above to be located at the upper boundary of the symmetrical triangle.

If the bullish momentum can persist to push price action above the triangle then the first level of resistance higher can be found at the short term 1.414 Fibonacci Extension level (drawn in red) priced at $6775 followed by the .382 Fibonacci Retracement level priced at $6824. If the bulls can push the market even higher then more resistance can be expected at the .236 Fibonacci Retracement priced at $7053 followed by the medium term 1.414 Fibonacci Extension level priced at $7510.

Alternatively, if the bears manage to push price action below the support at $6639 we can expect immediate support below to be located at the lower boundary of the symmetrical triangle. IF the bears can push price action lower then further support can then be expected at the .618 Fibonacci Retracement level priced at $6453 followed by the .786 Fibonacci Retracement level priced at $6189.

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Bitcoin Price Analysis: Is Bitcoin Ready for a Breakout Above the Short Term Consolidation Pattern
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Bitcoin Price Analysis: Is Bitcoin Ready for a Breakout Above the Short Term Consolidation Pattern
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Bitcoin Price Analysis: Bitcoin continues on its sideways trajectory as the market approaches the apex of another short-term triangle pattern. The cryptocurrency has seen a small price increase totaling +0.4% over the past 24 hours of trading as it currently exchanges hands at a price of $6627.
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Yaz Sheikh 49 Articles

Yaz is a cryptocurrency technical analyst and has been actively trading financial markets for over 7years, with 4 years of crypto experience. He is an Economics graduate who has taken a keen interest on the future potentials of blockchain in the financial industry. Aside from cryptocurrency and trading Yaz enjoys spending his time watching his favourite football team (Liverpool F.C.) compete as well as keeping up-to-date with the UFC. Reach out to him at [email protected]