The bears have been trying to push the price down all day, however, the support at $415 proved to be quite resilient as it handled dump after dump.
After a low of $412 Bitcoin’s price quickly rebounded to the $416 levels, however another sell wave caused support to dip once again to the $412 level. Currently Bitcoin is trading at $414 and is currently on a rebound from the support line.
Looking at the monthly chart we notice a classic Inverse Head and Shoulders pattern. Furthermore, many traders are waiting for some important triangles to break out before making any moves. One of those triangles was discussed in a previous Bitcoin technical analysis.
Chart from Bitcoinwisdom
In order for the inverse h&s to form, the price must dip to previous shoulder’s level, which is around $410. The price did test support at $412 so that could’ve been it, if the theory is correct then the price should rise to $420 where it would break out to new heights.
It seems that currently a popular strategy employed by traders is to wait for a triangle to breakout then follow the momentum, while one may not make the most profit that way, it is definitely a safer way to trade. Matthew22 from tradingview provided the following chart to show the upcoming breakout:
Chart from tradingview
I am flat right now but overall bearish on BTC . Depending on which side of the triangle we break out I may follow the momentum.
Furthermore, another chart on tradingview by holtackers also suggests an upcoming breakout but this time using a different triangle:
Chart from tradingview
While the triangles were created by different traders using different sets of points, both agree that a breakout will occur mid April in around 3 weeks. If you are planning to go long then now is a good time to accumulate more BTC, however, if you are skeptical of any further major price now is a good time to sell.
The next few months will be critical to Bitcoin’s price as the market will search for a new price to settle at when the breakout comes. Cgs0541 from r/BitcoinMarkets says it best:
At this point, it is pretty clear from this long consolidation that whatever the next move may be, it will be major trend setting move for the coming months. During times like this I tend to do thought experiments to see how this pre-breakout period would look in hindsight a few weeks from now.
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