- Formation of Symmetrical triangle confirmed;
- Bitcoin price broke out is imminent;
- there is a probability of the bulls taking over the BTC market.
BTC/USD Long-term Trend: Bearish
Distribution Territories: $6,439, $6,509, $6,609
Accumulation Territories: $6,356, $6,286, $6,192
Last week, Bitcoin was bearish on the long-term outlook. The bulls were able to pushed BTC price to the high of $6,509 distribution territory last week, before the Bulls lost the pressure and were unable to continue its uptrend due to the bears’ pressure that is clearly seen on the daily chart with the formation of bearish engulfing candle followed by strong bearish candle that brought the BTC price to the low of $6,286 accumulation territory before the bulls rejected further reduction in BTC price.
The scenario has led to the formation of a symmetrical triangle pattern on the daily chart. This sideways movement within the symmetrical triangle may continue until there is a break out of the Bitcoin price from the triangle.
The bulls will be required to gain enough momentum in order to break out from the upper trend line of the symmetrical triangle before noticeable volatility in the BTC market. Likewise, the bears need more pressure to break the bottom trend line of the triangle before the downtrend movement can occur.
BTC price remains under the 21- day EMA and 50-day EMA which indicate that downward trend is ongoing, even indicated with the drawn trend line. The Stochastic Oscillator period 14 is above 40 levels with the signal lines crossing each other upside which indicates the bulls may take over the BTC market soon. Traders should be patient and watch out for the break out before placing a trade.
BTCUSD Medium-term Trend: Bearish
On the 4-Hour chart, BTC/USD is bearish. Bitcoin price fell from the distribution territory of $6,509 to the accumulation territory of $6,286 last week. The bears dominated the BTC market due to the momentum lost by the bulls. The market opening candle formed on the 4-Hour chart is bullish in which it may break up the downtrend line drawn on the 4-Hour chart. In case the trend line is broken upside, the BTC price will rally to the north with $6,439 distribution level as the target.
Currently, the BTC price is between the 21-day EMA and 50-day EMA which connotes the increase in the bulls’ momentum. Also, the Stochastic Oscillator period 14 is at 50 levels with the signal lines point to the north which indicates a buy signal.