Bitcoin has not been able to recover to last week’s highest levels, around $39,000. Following the humorous ‘breakup’ tweet from Elon Musk that suggested that he had parted ways with Bitcoin, the price sunk to $35,000.
The weekend session has been chiefly sluggish, with the price action unable to gain momentum toward $40,000. The prevailing sideways has many analysts looking at the long-term trend instead of the short-term outlook, which has not yielded much for some time.
Meanwhile, the bellwether cryptocurrency teeters at $36,000 while bulls face immediate resistance from the 50 Simple Moving Average and the 50 SMA on the four-hour chart. It is apparent that rising beyond these barriers would challenging and may continue to delay the upswing.
Bitcoin dances within a potentially massive symmetrical triangle pattern
The 4-hour chart shows the formation of a symmetrical triangle pattern. The chart pattern is formed by converging a couple of trend lines linking sequential peaks and troughs. Generally, the trend lines are supposed to cross at an approximately equal slope.
A period of consolidation takes place before the triangle makes way for the next significant move, either a breakout or a breakdown. Realize that a breakdown occurs from the ascending trend line and marks the beginning of a downtrend.
On the other hand, a breakout happens at the descending trendline and identifies the start of a bullish trend. Symmetrical patterns tend to have precise price targets for the breakout or breakdown, mainly measured from the highest point to the pattern’s lowest point.
BTC/USD four-hour chart
BTC/USD price chart by Tradingview
The pattern on the chart above shows that a 35% breakout could swing Bitcoin to highs marginally above $50,000. Such a move will likely trigger massive buy orders as investors acclimate to the bull run starting all over again.
Bitcoin intraday levels
Spot rate: $36,340
Support: $35,000 and $33,000
Resistance: The 50 SMA, the 100 SMA and $39,000
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John is a talented writer with over two years of experience actively contributing to the cryptocurrency industry by providing credible, interesting and easy to read the content. His main focus is on cryptocurrency price analysis and industry news coverage. Lets follow him on Twitter at @jjisige