The Bitcoin price took a dip below the major $69,000 on Sunday. That said, the price is keeping very close to this level. In addition, a breakout pattern is emerging. If the $BTC price can break up and out of this pattern, $82,000 could be the target.
Triangle pattern emerges
Source: TradingView
The short-term time frame for $BTC shows that the price has dipped back below the major $69,000 level. We are calling it resistance in this time frame because a few candles have closed below, but in the higher time frames this level is still very much support.
The light green triangle in the centre of the chart has at least three touches to the top and to the bottom, confirming it as a pattern. At first glance it looks like a very bullish ascending triangle, but it can be noticed that the top of the triangle is tilted, and so it may be a wedge pattern.
The main thing is that it is a bullish pattern and therefore the price is more likely to break out of the top than the bottom. The target for the measured move out of the top of the triangle is $82,000, while if it breaks down, $57,000 is a possible downside target.
It might also be taken into consideration that a CME gap still needs to be filled at a level of around $84,600.
A break up or down out of triangle pattern?
Source: TradingView
The daily chart shows how the bottom trendline of the large falling wedge pattern has become resistance for the $BTC price over the last several days. This is in fact the top trendline of the green triangle. There is only another couple of days left in this triangle before a breakout has to take place in one direction or the other.
If the major support level holds, the breakout is going to be to the upside. This is probably the more likely option, although a bearish scenario is still very much in the running.
The first of the indicators below tends to go along with the bearish case. The Stochastic RSI indicators have reached the top and are at the point of rolling over. If they do, the triangle pattern could break down.
In contrast, the MACD at the bottom of the chart illustrates a cross up of the indicator lines, while the first couple of small green bars emerge in the histogram. This supports the bullish case.
Major support is holding … just
Source: TradingView
Zooming out into the weekly time frame, and keeping the same indicators, it can be seen that the $BTC price is managing to hold the major support. The two previous weekly candles both shot wicks down below, but the candle bodies closed above (the last candle close was thereabouts).
It’s a possibility that the price does break down further, and we can see there are good support levels at $65,000 and $60,000. The $53,000 support is drawn in because it is also the measured move out of the bear flag (in purple).
While the Stochastic RSI indicators are bottoming nicely again ready for a potential cross back up, the MACD indicators in this time frame are still heading down. In fact, they are at their lowest levels ever – could this be a sound reason for a turnaround from here? The latest histogram bar has turned pink, so perhaps this indicator is on its way back to a bullish green colour?
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
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