Over the weekend, bitcoin was unable to recover to its highest level of last week at about $ 39,000. The market is dominated by a sideways trend, which analysts perceive as long-term.
Currently, the leading cryptocurrency is hovering at $ 36,000, while the bulls on the 4-hour chart are facing resistance from 50 simple moving averages and 50 SMA. Clearly breaking these barriers will be a daunting task that will continue to hold back the recovery.
The 4-hour chart shows the formation of a symmetrical triangle. This pattern is formed by the convergence of a pair of trend lines connecting successive peaks and troughs. It is usually assumed that trend lines cross at approximately the same slope.
Before the triangle gives way to the next significant move, an up or down breakout, a period of consolidation occurs. A dive starts from an uptrend line and marks the beginning of a downtrend.
On the other hand, an upside breakout occurs on a downtrend line and indicates the beginning of a bullish trend. Symmetrical patterns tend to have precise price targets for the downward and upward movement, generally measured from the highest point to the lowest point of the pattern.
The pattern in the chart above shows that a 35% rally could push Bitcoin to highs slightly above $ 50,000. Such a move is likely to trigger massive buy orders as investors become interested in a bullish move.
Daily Bitcoin levels
Spot Rate: $ 36,340
Trend: flat
Volatility: low
Support: $ 35,000 and $ 33,000
Resistance: 50 SMA, 100 SMA and $ 39,000.
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