Bitcoin is about to start a new bull run. Is this the end of the great depression for cryptos? Very probably. Follow us in this technical analysis on Bitcoin to learn more.
Technical Analysis: Will Bitcoin break out of the Symmetrical Triangle?
After a few days of compression and stability, since June 18, the price of Bitcoin has been in a tidy. A stability between $21,800 and $18,600 but which should stop to give way to greater volatility.
Yes, the price of Bitcoin is about to break out of the symmetrical triangle, accompanied by high volatility. Indeed, Bitcoin, the “king of cryptocurrencies”, displays a symmetrical trough triangle on its price. This is a chart pattern that is explained by the indecision of investors in the market. When the price crosses the resistance or support of the triangle, it shows the potential for high volatility to come. Thus, the appearance of this symmetrical triangle may mean the end of the downtrend that started last November.
As we can see from the Bitcoin price chart, on a 4-hour time scale, the price is approaching the slanting resistance line (top) which forms the symmetrical triangle. The price may then breakout and start a new bull run. However, the price will need to be able to close above the resistance. By breaking out of this resistance, it could create support at the $20,500 level.
However, there is not only the symmetrical triangle, we also see a W taking shape inside the triangle. With these two reversal patterns, there would be a good chance that Bitcoin will start the long-awaited bull-run.
Symmetric Triangle on the price of Bitcoin – What are the indicators telling us?
The 50 moving average has already been exceeded by the price of Bitcoin, which means that the price is ready for a bull run.
The Bollinger Bands are moving apart which means high volatility is coming.
The various economic news that will be published tomorrow should potentially allow to increase the volume on the market. In addition, volumes have been increasing since June. This confirms, once again, the arrival of imminent volatility.
Final Word: Will Bitcoin (BTC) Explode Higher?
Yes, Bitcoin is highly likely to explode higher. This is because the symmetrical triangle, combined with the technical indicators, gives bullish signals on Bitcoin.
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