The Bitcoin(BTC) price maintained stiff support at $28500 and got hammered down from a falling trendline showcasing descending triangle pattern. In the past three weeks, the coin price narrowing towards the pattern’s apex may soon give a breakout opportunity. However, a contrary behavior between the price action and indicator suggests a possible breakout on either side, and therefore, the interested traders must wait for a genuine breakout.
The BTC price is getting squeezed inside a descending triangle pattern
The Rising RSI slope steadily approaches the neutral line.
The intraday trading volume in the Bitcoin is $18.3 Billion, indicating a 37.5% loss.
During the early May sell-off, the Bitcoin(BTC) price lost some crucial support, such as $36000, $33000, and $30000. The coin price plunged to a low of $26350, registering a 44.57% loss considered the last swing high of $48086 on March 28th.
However, the BTC price settled support a bit higher than the mentioned low, i.e., $28500. Furthermore, the coin price has been wavering above this support in a descending triangle pattern for the past three weeks.
This triangle pattern is a bearish setup, where the gradually lower higher reflects buyers are losing their grip over the coin. The BTC sellers should eventually breach the bottom neckline of $28500 to continue the prevailing trendline. Thus, if they succeed, the coin price would retest the $26350 low.
However, a less likely yet possible bullish breakout from the triangle’s resistance trendline may trigger a minor bullish pullback.
Throughout the triangle pattern formation and multiple retests to neckline support, the RSI slope trending higher supports the bullish breakout theory of price pattern.
Moreover, the rising ADX slope stalls at the 40% mark, indicating a setback in the bearish momentum.
Resistance level- $30500, and $33000
Support level- $28500 and $26700
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.