Bitcoin has been trading within a symmetrical triangle these past two weeks. Notice how after Bitcoin reached the top line a third time, it was quickly sold down to the bottom line, but the bulls came in and scooped Bitcoin back up from the bottom line. Now, Bitcoin is nearing towards the triangle’s apex. The triangle ends on January 29 and depending on where Bitcoin exits the triangle, either above or below the triangle, we should see a breakout or breakdown respectively.
Why will the outcome of this event be significant?
When uncertainty is high, the crypto market looks to Bitcoin as a bellwether and the winner of this battle may decide whether this month-long pullback was ultimately another 50% dip in Bitcoin’s upward trend or confirmation of a short-term bear market rally.
Should a breakdown occur, the next level of support should be the 850 EMA, which Bitcoin bounced off from twice these past two weeks. Should the 850 EMA fail, the next level of support would be the 1150 EMA. The last time Bitcoin fell from the 850 EMA to the 1150 EMA was in late March 2017.
Why will the outcome of this event be significant?
When uncertainty is high, the crypto market looks to Bitcoin as a bellwether and the winner of this battle may decide whether this month-long pullback was ultimately another 50% dip in Bitcoin’s upward trend or confirmation of a short-term bear market rally.
Should a breakdown occur, the next level of support should be the 850 EMA, which Bitcoin bounced off from twice these past two weeks. Should the 850 EMA fail, the next level of support would be the 1150 EMA. The last time Bitcoin fell from the 850 EMA to the 1150 EMA was in late March 2017.
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Chart Update: The original top line I drew was too steep, and BTC went on to test the top line of the updated triangle before ultimately breaking down.
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