Bitcoin’s price action has been rather volatile over the past two weeks, with the asset whipsawing between the $8,000s and $10,000s. In the past week alone there was approximately $250 million worth of position liquidations on BitMEX alone due to the volatility, according to data shared by crypto derivatives tracker Skew.com. Yet the price action has actually been consolidation from a macro perspective. Bitcoin is now approaching the apex of a crucial triangle pattern that has contained Bitcoin’s price action for the past few months. Its breakout will most likely decide the trend for the next few months, maybe even lower. That’s to say, should BTC break higher, it could be at the start of a full-blown bull run.
Bitcoin Is Reaching the Apex of a Triangle Pattern
A cryptocurrency trader recently shared the chart below, noting that Bitcoin is currently consolidating around the apex of two converging technical levels: 1) the horizontal resistance at ~$10,500, 2) an ascending trendline that has supported BTC since the March lows.
Due to the importance of these two levels and this triangle as a whole, the breakout will be important in determining in what direction the crypto market heads in the medium term. Read More...