After weeks of steady declines, bitcoin is taking a quick breather inside a triangle consolidation pattern.
Which way could it break out next?
Check out these potential upside and downside targets on the 4-hour time frame!
Bitcoin (BTC/USD) 4-hour Chart Faster with TradingView
Bitcoin has been stuck in a holding pattern for the most part of February, with price forming lower highs and finding support around $64,000 and S2 ($63,320) to create a descending triangle formation.
Improving risk appetite and a bit of dollar weakness can be credited for the pause in bitcoin’s selloff, though global trade uncertainty and elevated geopolitical tensions can still weigh on the OG crypto.
Where could it be headed from here?
Remember that directional biases and volatility conditions in market price are typically driven by fundamentals. If you haven’t yet done your fundie homework on the U.S. dollar and bitcoin, then it’s time to check out the economic calendar and stay updated on daily fundamental news!
BTC/USD just bounced off its triangle bottom and appears to have its sights set on resistance close to the pivot point ($67,766). Sustained bullish momentum could even spur a break higher, possibly putting bitcoin on track towards testing the next upside barriers at R1 ($69,912) then R2 ($72,212).
On the other hand, a return in bearish vibes could lead to another dip to the triangle support or perhaps a breakdown to the bearish targets at S3 ($61,020) then S4 ($58,720).
Just note that the 100 SMA is still below the 200 SMA to suggest that the path of least resistance is to the downside, though on-chain data reveals that whales aren’t exactly panicking and are quietly accumulating bitcoin.
Whichever bias you end up trading, don’t forget to practice proper risk management and stay aware of top-tier catalysts that could influence overall market sentiment.
Disclaimer:
Please be aware that the technical analysis content provided herein is for informational and educational purposes only. It should not be construed as trading advice or a suggestion of any specific directional bias. Technical analysis is just one aspect of a comprehensive trading strategy. The technical setups discussed are intended to highlight potential areas of interest that other traders may be observing. Ultimately, all trading decisions, risk management strategies, and their resulting outcomes are the sole responsibility of each individual trader. Please trade responsibly.
Promoted: The Analysis & Strategy are only half the Battle; Your Mindset is the Rest.
Today’s chart art highlights BTC/USD’s triangle pattern. But as any pro will tell you, a great setup can still fail if the trader lacks the discipline to execute around it well.
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