This Bearish Pattern Is Limiting Bitcoin’s Price Recovery
The narrow price spread in Bitcoin at the peak of descending triangle pattern indicates that the coin has entered a no-trading zone. Therefore, the interest traders looking for an entry opportunity should wait for this pattern breakout as it will offer a strong direction rally on the breakout side.
Key points from Bitcoin price analysis:
- The 20-and-50-day EMA offers dynamic resistance to Bitcoin price.
- A bullish RSI divergence bolsters the possibility of a bullish reversal
- The intraday trading volume in Bitcoin is $15.4 Billion, indicating a 50% loss
Over the last two months, the Bitcoin price has actively responded to a downsloping trendline and $18500-$18200 barrier. Thus, the technical chart represents this price action as a descending triangle pattern. In theory, this pattern’s series of lower highs indicate the losing bearish momentum.
Currently, the Bitcoin price currently trades at $19132 with an intraday gain of 0.33%. However, since the recent release of CPI data, the crypto market has witnessed high volatility for the past few days.
Furthermore, the Bitcoin price is close to the peak of the triangle pattern(No-Trading Zone), indicating a decisive breakout is nearby. Under the influence of this bearish pattern, the BTC price should breach the $18500-$18200 support and resume the prevailing downtrend.
Thus, a daily candle closing below the $18200 support will accelerate the selling momentum and may plunge the prices by 13.6% to hit the $16500 mark.
On the flip side, if the market sentiment improves and buyers give a bullish breakout from the descending trendline, the bearish theory will get invalidated. This development will offer an early entry opportunity to capture the potential upswing,
Technical Indicator
RSI: A bullish divergence in the daily-RSI slope bolsters the buyers for the resistance breakout. However, the current market sentiment is still negative as the indicator value wavers below 50%.
Bollinger band indicator: the coin price trading below the indicator midline indicates that the sellers are controlling the ongoing price behavior.
- Resistance level- $19600 and $20600
- Support level- $18000 and $16500
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