Technical analysis of Bitcoin market - watch out for breakthroughs!

Translation: spring_zqy

Bitcoin price has been stuck in a consolidation zone, forming lower highs and higher lows within a symmetrical triangle pattern.

Key points:

The price is currently testing support and is approaching the top of the pattern, which suggests that a breakout could occur soon.

Technical indicators suggest a possible decline.

Bitcoin price is about to break out of a symmetrical triangle consolidation pattern, which could determine the long-term price direction.

Technical indicators

The 100 SMA is still below the long-term 200 SMA, so the lowest resistance is still on the downside. However, the price currently seems to be finding support at the 100 SMA dynamic turning point.

If a rebound occurs here, the price may test the triangle resistance at $580, which is also close to the 200SMA dynamic turning point. Whether it is an upward breakthrough or a downward breakthrough, it will lead to a price rebound or decline within $20, which is also consistent with the height of the data table pattern.

Then the index is moving down, which means that sellers are controlling the price movement. Once the swing reaches the oversold zone and moves higher again, then there is a chance that buyers will take control and increase their profits.

Market Dynamics

The minutes of the Federal Open Market Committee meeting put pressure on the dollar as its views were not as radical as expected, but the return of risk aversion still made the dollar rise against Bitcoin. In addition, some Fed officials once again expressed their positive expectations, reminding market observers that the United States is still one of the stronger economies.

There are not many high-level economic data releases in the near future, which means that market sentiment will still be the main factor driving price changes. Bitcoin prices generally fluctuate more during weekends, as lower liquidity and profit-taking can lead to large price changes.