Bitcoin price analysis: Forget $20k, Triangle Pattern to decide BTC/USD direction
Bitcoin price analysis shows sideways movement on hourly timeframes
Choppy price action over the weekend saw traders sitting on the sidelines
There is hope around $19,000 support for a bounce back towards $21,000
The past month has seen Bitcoin price analysis bearish with a steep decline in the price. The primary cryptocurrency is going under a stagnant phase with a downside bias as the price fluctuates between $19k to $20k with each rally being sold into. The significant bearish momentum is pushing the boundaries for the bottom as the pair seems to be stuck in a quagmire.
Currently, the BTC/USD pair is moving dangerously near the 2017 high and the institutional investors are worried that the pair may slide lower. The bearish momentum along with the choppy price action seems to push down the price into a consolidation zone. Both bears and bulls are not taking any chances with large positions. The red candle of last week closed the month with a negative downside. So, will Bitcoin price analysis throw up some good news this week?
Bitcoin price movement in the last 24 hours: Steep drop and sharp pullback expected?
The current Bitcoin price analysis is showing no signs of turning extremely bullish or bearish as the price is stuck in between the Bollinger Bands. The major cryptocurrency has lost close to 75 percent of its value since touching all-time high in November 2021. However, the present price trajectory does not show any signs of a quick reversal. The overall trend on the daily timeframe is bearish.
The macro factors are amplifying the negative sentiment in the Bitcoin price anlysis. The lack of demand from institutional investors, global regulations, and breakdown of key support levels is not helping matters either. The odds of another bearish leg downwards are high as the price moves close to the $17k support zone. Bears are highly likely to build more short positions as the pair comes near $18k barrier in order to push the pair below $15k. If $15k pops up on the charts, Bitcoin price analysis would move in a whole different zone as per Bitcoin price analysis.
BTC/USD 4-hour chart: Support zones are crumbling away
The last couple of days has seen the price move in a stagnant fashion and demolishing most critical support zones including the $20k and $19k. The middle boundary of the channel is still holding up pretty well near $18k zone and there is hardly any indication of reversal pattern according to Bitcoin price analysis. An expansion move is likely to build a correction pattern on the charts. Bulls will expect a ‘Triangle Pattern’ to get up hopes of a reversal.
The RSI is at 30 level and shows no signs of a corrective pattern in a hurry. The choppy price action can turn into a bullish or bearish scenario as soon as the volumes pour in. The upper boundary of the triangle will seek to break above the $22k sentimental resistance. This will reassure bulls to create more long positions and turn the pair bullish over a short term.
On the other hand, if the scenario turns bearish, the price moves under the triangle and moves closer to the $17k zone. The critical resistance at $20k will strengthen further.
Bitcoin price analysis: Triangle pattern holds the key to next direction
As the whales gear up to assess the next move of Bitcoin, the large investors are looking at key metrices. The exchange inflow is moving in a choppy direction with no immediate event. The high price volatility is only leading to more stagnant price action.
The traders must look towards the ‘Triangle Pattern’ and its possible breakout to determine the next catalyst for any price move. On-chain analysis shows that BTC’s are pouring into the crypto exchanges courtesy the whales. It shows that selling activity is still underway and the selling pressure can increase as the price moves forwards.
As big players realize losses, there is hope that the price has hit the bottom. Nevertheless, traders must eye key price extremes like $20k and $19k as the week begins on a muted note.