Bitcoin has seen sustained sideways trading for the past few days. Selling pressures above $ 19,000 allowed the bears to trigger several strong sell-offs in the past few weeks.
These rejections have all resulted in the cryptocurrency making a series of lows. This is an incredibly bullish technical pattern that could indicate that a serious uptrend is imminent if held for an extended period of time.
That technical strength has certainly dealt a blow to the bear, but selling pressures between $ 19,500 and $ 20,000 are still significant and could further hamper growth in the coming days and weeks.
Consolidation due to the recent battle between buyers and sellers may not last very long.
A trader is now noticing that the crypto is approaching the apex of a massive triangle formation that can lead to tremendous volatility in the short term.
These patterns usually lead to bullish breakouts, which could mean the next higher surge will be quick and violent.
Bitcoin Consolidates As Bulls Defend $ 19,000
At the time of writing, Bitcoin is trading marginally at its current price of $ 19,160. Here has been trading in the last few days.
$ 19,000 was a pivotal level for BTC as pauses above and below that level appear to be trending events.
Where bitcoin trends in the medium term are likely to depend on the sustained reaction at $ 19,000, a sustained trading price above or below that level could provide serious insights into the medium term outlook.
The main downside support to watch is around $ 18,600 with the next level of resistance at $ 19,400.
Analysts claim BTC is on the verge of massive volatility
An analyst explained in a new tweet that Bitcoin is on the verge of massive volatility in the coming days.
It points to a triangle formation that has moved to lows of $ 16,400 after the recent decline in the cryptocurrency.
“If I’m not sure about the direction, I always switch to the linear $ BTC chart to filter out the market noise. The price essence shows a clear consolidation that contracts in the shape of a triangle. Near the top today I would expect a big breakout and volatility. Set stops fam, ”he said, pointing to the table below.
Image Courtesy of CryptoBirb. Source: BTCUSD on TradingView.
The coming days should provide insights into the long-term significance of this triangular pattern for Bitcoin price development.
Featured image from Unsplash. Charts from TradingView.