Bitcoin continues to trend inside a large triangle. Bullishness on the rise and a breakout on the horizon?
Bitcoin continues to trend inside a large symmetrical triangle with the bulls and bears continuously in indecision as to which way the cryptocurrency should go. BTC has been in an ever-tightening range since September 17. The pair is likely to continue bouncing between the support and resistance lines of the triangle which concludes on October 18.
There, of course, remains the potential for a break-up and break-down in the short term. As Bitcoin, yet again, presents no clear direction investors and traders alike are unlikely to take a stand either way for the time being.
On the upside, a clear break above $6800 would show the bulls have taken charge and the cryptocurrency could rally to $7500 - $8000. Traders should wait for confirmation of the break before entering new positions and do so with tight stop-losses as such breaks above the resistance have been met with fierce opposition by the bears and the pair has fallen back below the resistance on nearly every breakout since the $20k high.
On the downside, a break below the support of $6400 is likely to see a retest of the $6000 support, which has been tested many times. This support is likely severely weakened and is expected to fail if tested resulting in a further fall for Bitcoin to support levels as low as $5400.
As such we wait for either the bulls or the bears to make a commitment with resolve to a price movement. Until then Bitcoin will remain in limbo in a sideways trend.