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bitcoin price BTCUSD
bitcoin BTCUSD

Bitcoin Prices Challenge Triangle Support, Might Result in a Big Drop

    Summary:
  • The Bitcoin price is now challenging the triangle support at $9280.0 formed in the 4-hour chart. Can the bears win the battle?

The Bitcoin price is now challenging the triangle support at $9280.0 formed in the 4-hour chart. A clear break of the triangle support level might result in a big drop in the price of Bitcoin. Though the optimistic Bitcoin bulls are expecting a bullish breakout, the increased number of limit sells orders with the broker Coinbase might fuel selling pressure in Bitcoin. Failing to gain the bullish momentum at $9280.0 might lead this pair towards the major support level at $8984.1, the October low. Moreover, the bearish engulfing pattern in the 4-hour chart, in Bitcoin also suggests the Bitcoin bulls are losing the steam.

Currently, the price of Bitcoin is trading at the verge of the triangle. So, an imminent breakout in Bitcoin price is expected. Clearing the major resistance at $9433.7 might result in an extended bullish rally. This might push Bitcoin higher towards the next major resistance at $10463.7. But for such an extended rally in Bitcoin price, the fundamental catalyst must favor the Bitcoin bulls. Based on the current chart pattern price action signal, the buyers might have trouble to regain strength. On the contrary, in the absence of definite bearish reversal, placing any short trades, might be an aggressive entry. So, it might be better to observe the Bitcoin price until we get a more favorable trading opportunity.

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