Bitcoin lags triangle breakout as consolidation takes over.
BTC/USD breakout above both channel and triangle resistance could open the way for gains to $10,500.
Bitcoin’s falling triangle pattern failed to work out as expected. An attempted breakout did not materialize during the weekend session as Bitcoin upside was capped under $9,900. Fortunately, downward price actions were also limited with Bitcoin
managing to in a consolidative movement. The drab action seems to continue in the new week trading with Bitcoin teetering at $9,725.
BTC/USD has a short term bearish inclination at the time of writing. However, there is a couple of bullish scenarios that could keep Bitcoin afloat in spite of the low volume and even lead to a breakout to $10,500.
First, the following triangle pattern breakout is yet to materialize. However, its impact cannot be ruled out just yet. If buyers manage to suppress the resistance at the triangle resistance, the move could open the door for gains above $10,000. Note that such a move will require the participation of the majority of the bulla, which calls for confidence in the potential for recovery.
BTC/USD 1-hour chart
Second, a ranging channel with support at $9,430 and a resistance limit at $9,865 is the unmentioned hope for the largest cryptocurrency. The channel support could ensure that losses do not go beyond $9,400 in case Bitcoin bounces off the triangle resistance. On the upside, a step above the channel resistance would encourage more buyers to join the market and push the price higher. For now, consolidation is set to continue even as bulls focus on breaking short term resistance at $9,800.
Luke has had a long interest in financial technology, especially cryptocurrency and blockchain. With a Bachelors degree in Journalism and Media, Luke is dedicating his writing skills for the digital currency sphere.He can be contacted at email@example.com