Bitcoin [BTC/USD] Price Analysis: Price is Trading Inside a Symmetrical Triangle, When Will it Break out?

The price of BTC/USD traded at $4225 on February 24th, before creating bearish divergence in the RSI and breaking down. While at first, it found support on the ascending support line that had been in place for 22 days, the ensuing bounce was not successful and it has finally broken down below it. Price is trading right on line with the short and long-term moving averages. In the short-term, the price is trading inside a symmetrical triangle and has been doing so for the past 3 days and 13 hours.

Key Highlights:

  • There is major resistance near $4400.
  • Price broke down from the support line in place for 22 days.
  • There are minor support areas near $3800 and $ 3700.
  • Price is trading inside a short-term symmetrical triangle.

Bitcoin Price Analysis – BTC/USD – 2 Hours Chart

A look at the 2-hour chart shows us that after touching $4250, price generated bearish divergence in both the RSI and MACD, before dropping sharply all the way to the support line that has been in place for roughly 22 days. However, the bounce was not successful and the price has finally broken down below the support line. It is currently trading at $3915, right in line with both the short and long-term moving averages. There has been minimal movement in the price for the past two days, causing the moving averages to converge. There is also a minimal volume on candles, albeit the volume one bearish candles is larger than that on bullish ones.

As for the indicators, the price is trading right on the 21,50 and 200-period moving averages, which have experienced minimal movement. Price has also found support above the Ichimoku cloud, which is positive. The RSI is at 49, almost in oversold conditions, but there is no divergence developing yet. The MACD is struggling to get back into positive territory.

BTC/USD – Price Analysis – 15 Minutes Chart

 

A look at the 15-minutes chart shows that after the drop, the price has been struggling to break above the 0.382 fib line which is at $3980, even though it has been trying for the past 6 days hours. There is significant resistance at $4000, formed by previous support and the 0.5 fib line. Price has formed a support area near $3800, where it has made a triple bottom (bullish reversal pattern).

A common occurrence has been the creation of the double top pattern combined with a bearish divergence in the RSI, followed by a sharp drop. This has happened three times so far. We can see that price is following an ascending support line, which has been validated three times. The support line combined with the resistance near $3980 form an ascending triangle. Price has been trading inside the triangle for the past 3 days and 13 hours, while the triangle is projected to end in 2 days. If a breakout occurs, other resistance areas to keep an eye on will be found at $4063 and $4124, found by the 0.618 and 0.712 fib lines.

The post Bitcoin [BTC/USD] Price Analysis: Price is Trading Inside a Symmetrical Triangle, When Will it Break out? appeared first on Coingape.

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