Bitcoin Price Analysis: BTC/USD triangle pattern hints reversal to $5,000 imminent
|- Bitcoin price is in the hand of the bulls according to technical indicators.
- Bitcoin bulls must defend the triangle support at all costs to avoid losses towards $5,000.
- In the short term, the bulls should take back the support above $6,400 to keep sellers at bay.
BTC/USD daily chart
Bitcoin price has given away the support at $6,400 to trade at $6,361 at the time of writing. In spite of the drop from $6,423, the technical picture remains healthy. For instance, the RSI is holding the position above 50 after recovery from the weekend low at 39.58. The MACD is moving towards the mean line in a bid to re-enter the positive region. A bullish divergence above the MACD clearly shows buyers gaining traction against the sellers.
However, a rising triangle pattern could erase all the gains accrued in the past two weeks if Bitcoin fails to break above the $7,000 level and freefalls towards $6,000. Buyers must ensure that the triangle support is kept intact to avoid another devastating crash towards $5,000.
BTC/USD 2-hour chart
Bitcoin price is trading between the support and resistance of the moving averages. The 50 SMA is in line to offer support at $6,336 while the 100 SMA could hinder movement at $6,465. BTC/USD bulls need to take back the position above $6,400 which will allow then to focus on breaking the resistance at $6,500 and $7,000 respectively.
Spot rate: $6,361
Trend: Bullish
Volatility: High
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