Hours before the Fed’s interest rate release, BTC is showing moves of indecision. This results in the appearance of a symmetrical compression triangle on the H1 chart. A pattern that precedes a volatility movement on Bitcoin (BTC). Indeed, the market is preparing for the decision of the US central bank. Following this, could we see bitcoin at $22,000? Check out this analysis.
Bitcoin: A Symmetrical Triangle Before High Volatility
On the H1 chart of Bitcoin, we can see a figure of indecision. This is a symmetrical triangle that has formed since the weekend. This is a logical continuation of the bullish phase of last week. Indeed, after a rally, the market always tends to begin a correction. Similarly, here, Bitcoin appears to be entering this phase.
However, the volatility of the bitcoin price will have to cause the breakout of this figure. If the price breaks the triangle down, it will likely reach the area around $19,645. Indeed, this is a key level on the Fibonacci retracement tool. But not only, this level also aligns with a support zone. Thus, it is highly likely that the price of Bitcoin will fall towards this level.
What are the levels to monitor?
The Fed’s decision will likely have an impact on the price change of BTC. Indeed, the interest rate is among the most relevant economic news. Faced with this impending volatility on bitcoin, there are several levels to watch.
If the price breaks the triangle upwards, the most relevant resistance is found around $22,000. In addition, this area also lines up with an “imbalance”. The potential upside after the Fed’s decision will be unfavorable for the bears. Indeed, stop orders that reside above the “double-top” of $21048 will be taken. Therefore, sellers will close their short positions with a loss.
On the other hand, it could be that the correction phase continues. This will cause the triangle to break down. In this case, the closest support is found at $19,645. Once it reaches this level, the price could rebound again. Indeed, this is a relevant area that lines up with the 0.786 level of the Fibonacci retracement. This makes it an ideal territory for bulls to place their buy orders.
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