Bitcoin has been caught in a sustained attack of sideways trading in recent days, with selling pressures of more than $ 19,000, allowing bears to trigger several strong sell-offs in recent 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 upward move is imminent if held for an extended period of time.
This technical strength has certainly taken a blow to the bears, but selling pressure between $ 19,500 and $ 20,000 is still significant and may continue to stunt growth in the days and weeks ahead.
The consolidation resulting from this recent battle between buyers and sellers may not last too long.
A trader now notes that the crypto is approaching the apex of a massive triangle formation that could cause it to see tremendous volatility in the short term.
These patterns typically result in bullfighting outbreaks, which could mean that the next push higher will be quick and violent.
Bitcoin Consolidates While Bulls Defend $ 19,000
At the moment of writing, Bitcoin is trading marginally at the current price of $ 19,160. This is roughly where it has been trading for the past few days.
$ 19,000 was a critical level for BTC as pauses above and below this level appear to be trend-setting events.
Where Bitcoin medium-term trends will likely depend on its sustained response to USD 19,000 as a sustained trading period above or below this level could provide serious insights into the medium-term outlook.
The main downside to look at is at around USD 18,600 with the next resistance level at USD 19,400.
Analysts argue that BTC is about to see massive volatility
An analyst explained in a recent tweet that Bitcoin is about to see massive volatility in the coming days.
He points to a triangle formation that has taken shape following the cryptocurrency’s recent decline to lows of $ 16,400.
“When I am unsure of direction, I always switch to a linear $ BTC chart to filter out the market noise. The essence of the price shows a clear consolidation that contracts in the shape of a triangle. As I approach the top today, I would expect a major breakout and great volatility. Set quits fam, ”he said, pointing to the map below.
Image Courtesy of CryptoBirb. Source: BTCUSD on TradingView.
The coming days should provide insight into the long-term importance of this forming triangular pattern on Bitcoin’s price promotion.
Featured image from Unsplash. Charts from TradingView.