Bitcoin price analysis Forget $20k Triangle Pattern to decide BTC/USD direction

Over the past month, bitcoin price analysis has been bearish with a sharp drop in price. The major cryptocurrencies are entering a stagnation phase with a bearish trend as prices oscillate between $19,000 and $20,000 for each gain sold. The significant bearish momentum pushes the downside as the pair appears to be mired in a bog.

The BTC/USD pair is currently hovering near its 2017 highs, and institutional investors are concerned that the pair could fall lower. The bearish momentum along with the volatile price action seems to be pushing the price into the consolidation zone. Both bears and bulls do not risk big positions. Last week’s red candle ended the month with a negative decline. So, is Bitcoin price analysis going to be good news this week

Bitcoin Price Action In Last 24 Hours: Sharp Drop And Strong Pullback Expected?

The current bitcoin price analysis shows no signs of turning very bullish or bearish as the price is stuck between the Bollinger Bands. The major cryptocurrency has lost nearly 75 percent of its value since hitting an all-time high in November 2021. However, the current price action shows no signs of a quick reversal. The overall trend of the daily timeframe is bearish.

Macro factors add to the negative sentiment in bitcoin price analysis. Lack of demand from institutional investors, global regulations, and disruption of key support levels are also not helping. Chances for further declines are high as the price moves near the $17,000 support area. Bears are likely to add more short positions as the pair approaches $18,000 to push the pair below $15,000. According to bitcoin price analysis, when $15,000 hits the chart, bitcoin price analysis moves into a completely different zone.

BTC/USD 4-hour chart: support zone is breaking up

btc price chart

Over the past few days, the price has stagnated and broke through the most critical support zones, including $20,000 and $19,000. The channel’s average border still holds pretty well near the $18,000 area and according to bitcoin price analysis, there is little sign of a reversal pattern. A lengthening movement is likely to form a corrective pattern on the chart. Bulls will be waiting for a “triangle pattern” to raise hopes of a trend reversal.

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The RSI is located at the level of 30 and shows no signs of a rapid corrective pattern. Volatile price action can turn into a bullish or bearish scenario as volume flows in. The upper border of the triangle will try to break the sentimental resistance at $22,000. This will lull the buyers into longer positions and turn the pair bullish in the short term.

On the other hand, if the scenario turns to bearish, the price will move down the triangle and approach the $17,000 area. The critical resistance at $20,000 will continue to strengthen.

Bitcoin Price Analysis: The Triangle Pattern is the Key to the Next Direction

As the whales prepare to assess Bitcoin’s next move, big investors are eyeing the leading indicators. The flow of exchange moves in an agitated direction without any immediate events. High price volatility only causes stagnant price movements.

Traders should pay attention to the “triangle pattern” and its potential breakout to determine the next catalyst for any price movement. On-chain analysis shows that BTC is pouring into crypto exchanges thanks to whales. This indicates that sales activity is still ongoing and selling pressure may increase along with rising prices.

When big players take losses, there is hope that the price has bottomed out. However, traders should keep an eye on major price extremes like $20,000 and $19,000 when the week starts to settle down.

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