A pattern resembling triangle arisesIn a previous article about Bitcoin, we discussed how it has been struggling to move higher since early December 2023. Additionally, we outlined a few bearish developments on the daily chart and emphasized the weak trend. Currently, we are paying close attention to the pattern resembling an ascending triangle on the hourly chart. A breakout above the upper bound of the pattern will bolster a bullish case and potentially lay the path for Bitcoin’s continuation to $48,000. Contrarily, a failure of the price to break through the upper bound will dampen the odds of a continuation higher; the same applies to the distortion of the pattern. However, considering that the number of Bitcoin addresses (with balances exceeding 100 BTC and 1,000 BTC) ticked higher following the dip in the price, it looks like big players might be positioning themselves for another move up. As a result, our stance remains unchanged.
Illustration 1.01
Illustration 1.01 shows the daily chart of BTCUSD and the upward-sloping channel. The price’s return within the channel remains a real possibility, especially if the price breaks to the downside from the pattern we showed on the hourly chart.
Technical analysis gauge
Daily time frame = Slightly bearish (no trend/very weak trend)
Weekly time frame = Bullish
*The gauge does not necessarily indicate where the market will head. Instead, it reflects the constellation of RSI, MACD, Stochastic, DM+-, ADX, and moving averages.
Please feel free to express your ideas and thoughts in the comment section.
DISCLAIMER: This analysis is not intended to encourage any buying or selling of any particular securities. Furthermore, it should not serve as a basis for taking any trade action by an individual investor or any other entity. Your own due diligence is highly advised before entering a trade.
