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Bitcoin’s bull have been able to hold the cryptocurrency above its key near-term support level of $10,000, and it now appears that BTC is likely consolidating before it reaches the apex of the large descending triangle it is currently within, which will likely spark a big movement in the coming 24-48 hours.
Analysts are currently noting that a weekly close above $9,770 will mean that BTC closed above the bottom of its established trading range, which likely signals that the crypto could push towards its upper range bound in the near-future.
Bitcoin Finds Support Around $10,000
At the time of writing, Bitcoin is trading down marginally at its current price of $10,000, which marks a slight recovery from 24-hour lows of $9,900, with this fleeting drop into the four-figure price region being met with significant buying pressure.
Because Bitcoin has been consolidating within the lower-$10,000 region for the past couple of weeks, it is highly probable that the current pattern of trading marks a bout of consolidation before the crypto reaches the apex of the descending triangle that it has been caught within for the past several months.
It is likely that Bitcoin is soon going to incur significant volatility, which could be driven by a combination of the descending triangle resolving and tomorrow’s launch of Bakkt’s physically settled Bitcoin futures platform.
Is BTC Likely to Experience Further Upside?
Many analysts have been pointing to the fact that descending triangles typically result in a bearish downwards break, although the size of this triangle and the market psychology of most market participants believing that this formation will result in further bearishness may prove to be positive things for BTC.
Additionally, analysts widely believe that Bakkt’s launch will prove to be a positive thing for Bitcoin and the aggregated crypto markets.
CryptoGainz, a popular crypto analyst on Twitter, offered his followers a somewhat bullish outlook on Bitcoin’s near-term price action, explaining that a weekly close above its range low of $9,770 may spark some near-term bullishness.
“We’re at the bottom of range and I think we’ll bounce, but if the weekly closes below the 9770, I’m shorting $btc hard,” he explained.
https://twitter.com/cryptogainz1/status/1175616583651213312
The day ahead may prove to be critical for the establishment of a mid-term trend for Bitcoin, as the culmination of tonight’s weekly close, the apex of the large descending triangle, and Bakkt’s launch, will likely spark some unprecedented volatility.
Featured image from Shutterstock.
