Bitcoin Price Analysis: BTC lags a seemingly imminent 35% breakout to $50,000

  • Bitcoin remains pivotal in a narrow range following last week’s breakdown from $39,000.
  • BTC’s immediate upside is capped by both the 50 SMA and the 200 SMA.
  • A symmetrical triangle pattern could see Bitcoin rally back to $50,000 in due time.

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.

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.

Bitcoin intraday levels

Spot rate: $36,340

Trend: Sideways

Volatility: Low

Support: $35,000 and $33,000

Resistance: The 50 SMA, the 100 SMA and $39,000

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