The Crypto market has been silent since last week with reduced volatility. Bitcoin price movement is moving within a triangle chart pattern and could breakout soon.
October 2018 | AtoZMarkets – Bitcoin has continued this week how it ended last week. Price is moving within a sideway range. Trade volume has reduced to $3.2 billion after it spiked to $7.4 billion last week. Market capitalization has dropped by nearly $2 billion and now moves between $111 billion and $113 billion according to data from CoinMarketCap. Bitcoin is currently trading slightly $6500 – almost unchanged from last week range.
For many weeks, sellers couldn't push below $6000 as the buyers pull in to stabilize. The buyers have lacked enough momentum to push for price recovery beyond the reach of the bears. Market is still bearish for now but another big up push shouldn't be ignored. The large 15th October engulfing bullish candle at the base of the current triangle pattern (formed between mid August and now) shows a bullish signal. However the trend preceding the triangle pattern is bearish. Often times, price breaks out in the direction of the preceding trend.
BTCUSD Technical Analysis: The Big Triangle
After 15th October bullish spike, price has entered into another sideway range, developing into a smaller triangle pattern engulfed in a much bigger one as the chart below shows.
The chart above shows the big 2-month triangle pattern. Within this period, price dropped to $5900, retraced to $7400 and then dropped to $6000 after a bullish visit of $6800. These are important levels to watch for. There is a technical consensus that once selling pressure could push below $5000-5900, a new low between $5000 and $4000 would much likely be seen. The longer the bulls hold, the higher a chance of taking it back to $7500-$8500. Meanwhile, at the base of the triangle above, price is making another triangle pattern after price surged from $6000 on 15th October. The chart below shows the triangle much clearly.
BTCUSD Technical Analysis: The Small Triangle
The small triangle above shows the 'trade war' between the bulls and the bears after after 15th October price surge. The buyers just couldn't continue to push further and price went sideways. The sideway could continue till mid week to complete the triangle before an eventual breakout. Upside, the target is between 6500 and 6800. If price breaks downside, the sellers would likely push to 6100-6000 support level once again.
Where do you expect the breakout to be? Share with us in the comment box below.