Bitcoin [BTC] price gained $365 as the market showed signs of reversal at $10, 070. BTC broke bullish on 12th September gaining about 3.6% on a daily scale.
The market sentiments of the traders had a bearish penchant due to the imminent break-out from the descending triangle. However, the momentum recorded a high just short of $10.5k at $10,460. The move has started to scare the bears off.
The last break-out came at the back-drop of a bull flag on the shorter time scales (less than 1 hour). Crypto chart analyst, B.Biddles tweeted,
a couple months ago I’d be tempted to take out a loan to long this kind of progression, but lately it has broken down more than up. A good r/r play long or short. At resistance (short) but breakout looks imminent (long). Both tight stop.
Sawcruhteez indicated a target of around $10,650 at the break-out. However, now that it is retesting the levels with a decreased volume. We can expect a move back downwards.
While the break-out occurred, it has fallen back to the base again.
Fear of the triangle
The fear of a break-out from the triangle has been the biggest concerns of crypto twitter at the moment. There is a higher probability of a plunge. However, as the price continues to extend inside the range, the chances of a bullish surge are also growing.
Recently, Derivative Trader and chart analyst, Tone Vays said in his Trading Bitcoin update that,
“That there is a 30% probability of a descending triangle breaking up. And when it does… it goes it violently.”
Moreover, a pattern needs confirmation of a break-out to pan out the targets. The fundamentals are positive due to increasing adoption by institutional investors.
The Bakkt launch is expected to have a considerable impact on the markets. Nevertheless, the volume of trading and the positions (long or short) placed by institutions would eventually dictate the momentum.
Furthermore, currently, the price is trading in between the break-out range. The uncertainty seems so high that the consolidation can be extended or we can even witness a false break-out.
Do you think Bitcoin will turn towards the bulls or bears? Please share your analysis with us.
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Nivesh from Engineering Background is a full-time Crypto Analyst at Coingape. He is an atheist who believes in love and cultural diversity. He believes that Cryptocurrency is a necessity to deter corruption. He holds small amounts of cryptocurrencies. Faith and fear are two sides of the same coin. Follow him on Twitter at @nivishoes or mail him at nivesh(at)coingape.com