Bitcoin has been caught within a persistent bout of sideways trading throughout the past few days, with the selling pressure seen above $19,000 allowing bears to spark multiple strong selloffs throughout the past couple of weeks.
These rejections have all resulted in the cryptocurrency forming a series of higher-lows, which is an incredibly bullish technical pattern that could indicate that serious upside is imminent if held over an extended period of time.
This technical strength has certainly struck a blow to bears, but the selling pressure between $19,500 and $20,000 is still significant and may continue hampering its growth in the days and weeks ahead.
The consolidation seen due to this recent battle between buyers and sellers may not last for too much longer.
One trader is now noting that the crypto is nearing the apex of a massive triangle formation that may give rise to it seeing some tremendous volatility in the near-term.
These patterns typically result in bull-favoring breakouts, which could mean the next push higher will be swift and violent.
Bitcoin Consolidates as Bulls Defend $19,000
At the time of writing, Bitcoin is trading down marginally at its current price of $19,160. This is around where it has been trading throughout the past few days.
$19,000 has been a pivotal level for BTC, as breaks above and below this level seem to be trend-defining events.
Where Bitcoin trends in the mid-term will likely depend on its continued reaction to $19,000, as a sustained bout of trading above or below this level could provide serious insights into its mid-term outlook.
The key downside support to watch exists at roughly $18,600, with its next resistance level sitting at $19,400.
Analyst Claims BTC is on the Brink of Seeing Massive Volatility
One analyst explained in a recent tweet that Bitcoin is on the brink of seeing some massive volatility in the days ahead.
He is pointing to a triangle formation that has been shaping up following the cryptocurrency’s recent decline to lows of $16,400.
“When uncertain about the direction, I always switch to linear $BTC chart to filter out the market noise. The price essence shows clear consolidation which is contracting in the form of a triangle. Nearing the apex, today I’d expect big breakout and big volatility. Set stops fam,” he said while pointing to the below chart.
Image Courtesy of CryptoBirb. Source: BTCUSD on TradingView.
The coming few days should offer insights into the long-term importance of this forming triangle pattern on Bitcoin’s price action.