BTC Breaks Short Term Triangle - Will $31.5K Double-Bottom Hold?

9 juil. 2021

• Bitcoin is up a small 1% today as it battles to get back above $33,000.
  
  
• The cryptocurrency fell beneath a short-term symmetrical triangle pattern this week as the bulls fail to maintain the consolidation.
  
  
• All eyes rest on 30K for medium-term support.
  
  

Bitcoin is down a small 1.3% on the week as it returns back to around $32,800. The cryptocurrency was trading inside the confines of a symmetrical triangle pattern throughout the week but eventually broke beneath the lower boundary yesterday and headed into 32K support.
The buyers have defended 32K but seem to be struggling to climb back above 33K, which could be indicative of another bearish weekend incoming.
Despite the short-term triangle breakout, BTC still remains within the large range between 42K and 30K. A breakout of this range is what will dictate the next direction for the coin over the coming months.

Bitcoin Price Analysis

What has been going on?
Looking at the 4-hour chart, we can see that BTC was trading inside a symmetrical triangle pattern for most of the week. However, after failing to break $36,000 earlier in the week, the ears pushed BTC into the lower boundary of the triangle and the support around $33,414 (.5 Fib Retracement).

The bulls did try to defend the lower boundary and started to trend higher. However, they could not penetrate the resistance at $35,000 - provided by a bearish .5 Fib Retracement level and, as a result, BTC rolled over yesterday and fell beneath the lower boundary of the triangle.

After breaking beneath it, BTC continued lower and almost went as low as $32,000. It has since bounced but is showing struggles to break the resistance at $33,000.

Bitcoin price short-term prediction: NEUTRAL
Bitcoin still remains neutral in the short term and would have to break above resistance at $42,000 to start to turn bullish again. On the other side, a daily closing candle beneath $30,000 would be required to turn the market bearish.

Looking ahead, the first support lies at $32,650 (short-term .618 Fib Retracement). This is followed by $32,000, $31,500 (double-bottom formation support), $31,155 (.886 Fib Retracement), and $31,000.

Additional support lies at $30,600 and $30,000.

Where Is The Resistance Toward The Upside?
On the other side, the first resistance now lies at $33,000. This is followed by $33,415, $34,000, and $35,000 (bearish .5 Fib Retracement). Above this, additional resistance lies at $36,000, $36,515 (bearish .618 Fib Retracement), $38,000, and $38,620 (bearish .786 Fib Retracement).