Since Monday, the king of cryptos has seen no volatility. The price of bitcoin thus remains in a compression movement. Which forms a symmetrical triangle on the H4 chart. However, the bursting of this figure will be soon. What to expect after that?
BTC: formation of a symmetrical triangle since Monday
Monday’s session created the high and low of the week. These are the $17,720 and $15,820 levels respectively. And since then, bitcoin has not started any volatile movement. This, despite the publication of the Bank of England’s macroeconomic data on inflation in the country. There is also Canada’s central bank intervention on the economic calendar, which seems to have no effect on the crypto industry. Thus, a symmetrical triangle formed on the price of BTC.
This pattern started from Thursday’s low at $15,700. After a slight rise of 16% on Friday, bitcoin remained in a compression movement. Which forms the symmetrical triangle on the graph. This is a figure that demonstrates indecision in the market. It can be said that buyers and sellers are thus evenly matched. But be prepared for a volatile market after that. Indeed, both sides are currently accumulating their orders in order to break the triangle.
What to expect ?
Bitcoin price is gradually approaching the pointed end of the triangle. Therefore, expect the breakout of this figure soon. After the current squeeze movement, one could consider two possible scenarios for bitcoin. The first would be the breakout of the triangle up. But it will be a false breakout, as the price will encounter critical resistance. This is the $18,519 and $18,620 zone, which also lines up with the 50% level of the Fibonacci tool. But not only that, the 100 moving average (4h) is on the same level. Which makes it a relevant resistance. After that, we can consider bitcoin going down to $12,243.
The second scenario would be the breakout of this resistance. This will then be followed by a pullback after price hits the $20,000 resistance. In this case, the price will eventually break through $21,325.
Given the existence of an ascending triangle on the RSI, the first scenario would be the most likely. Moreover, the current situation in the crypto industry plays in favor of a decline. In any case, it seems that the current compression movement on bitcoin is nearing its end.
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