After initiating a downward move on November 18, the Bitcoin price has been trading inside of a symmetrical triangle. This is a likely continuation pattern, out of which BTC will likely break down and reach the support area at $7900-$8000.
Bitcoin Price Highlights
- The Bitcoin price is trading inside a symmetrical triangle.
- There is support at $7900-$8000 and $7450.
- A breakdown below the support areas could trigger a very rapid price decrease.
Since the decrease on November 18, the BTC price is trading inside a symmetrical triangle. Following a decrease, this can likely be viewed as a continuation pattern — from which we ill likely break down.
This view is also strengthened by the bearish engulfing candlestick with a long upper wick which ended at $8300. This shows that, while the bulls tried to initiate a breakout, it was unsuccessful.
We have outlined two support areas, found at $8000 and $7450. The breakdown from the triangle would likely take the price to the first support area, from which it can initiate a bounce.
Looking at the weekly chart, we can see that the Bitcoin price is in the process of creating the fourth bearish candlestick in a row.
Additionally, the Bitcoin price is trading very close to what seems like the final support area until near $5000. A breakdown below the current support could initiate a very rapid decrease, mirroring the rate of the previous upward move that occurred throughout April/May.
The EOS price has been increasing since September 4, following an ascending support line. This move was preceded by bullish divergence in the RSI.
There is a resistance area at 4000 satoshis. If the EOS price breaks out, which looks like it will happen eventually, it is likely to reach the resistance area at 4800 satoshis and possibly higher.
For our previous analysis, click here.
Disclaimer: This article is not trading advice and should not be construed as such. Always consult a trained financial professional before investing in cryptocurrencies, as the market is particularly volatile.
Images courtesy of Twitter, TradingView.
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