October 2, 2022

Bitcoin Price Analysis: BTC Inside Descending Triangle– $24K or $28K Next?

2 min read

Bitcoin cost has fallen under the psychological $27,000 level today and is now tracking inside a descending triangle pattern on the 4-hour chart.

These patterns form when the cost combines in between a sloping resistance and flat assistance (yellow lines). It’s usually a signal that bearish momentum is increasing and that the flat support will be conquered soon.

Breakouts from this pattern tend to be rather extensive and require strong supports to offer bullish traders with an opportunity to push back.

$15 billion has actually left the worldwide crypto market in the last 24 hours and Bitcoin supremacy is back under the 70% mark.

Cost Levels to Watch in the Short-term

On the 4-hour BTC/USD chart, it’s clear that intraday selling pressure is increasing as BTC continues to print consecutive lower highs. The flat support for the descending triangle pattern is around $26,225, so a close underneath this level will verify the bearish breakout has started.

There is also another essential support level simply under this at the 0.236 Fibonacci retracement level at $23,857 which has captured the bottom of two dips during the last 48 hours. This could get a 3rd reaction during the preliminary breakout.

If the coming down triangle plays out, then we must seek to the following locations as the most likely supports in the short-term;

( 1) $25,200 – – the 4-hour 50 EMA (blue).
( 2) $24,263 – – 0.382 Fibonacci retracement level.
( 3) $24,000 – – Key mental level.

If the rate does break all the method pull back to $24,000, Bitcoin will remain in danger of falling back inside the variety between $24,000 and $22,470 that it was stuck in between December 17-25 (green shaded zone). In here, we could see volatility drop off and the price push sideways once again for a 2nd time as traders await more certainty in the market.

Underneath this range, there is a very strong backup assistance at the 0.618 Fibonacci level which also overlaps with the 200-EMA (red) at $21,720, which should offer a strong platform for bullish traders to rebound from on the occasion that prices slip out of the range.

For now, the main short-term resistance that bulls need to break in order to keep Bitcoin in an uptrend is the $27,050 level (white rushed line). Above this, there’s the next mental level at $28,000.

Bitstamp 4-Hour BTC/USD Chart

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BTC/USD chart by means of Tradingview