Consolidation pattern continues to hold Bitcoin
Traders looking at Bitcoin on the daily chart we can clearly see that price is firmly held in a consolidation pattern after buyers re-held the base in last Friday’s session.
Bitcoin is currently trading in a descending triangle pattern these patterns are not always seen as bearish but traditionally are seen as possible reversal patterns. The pattern is in an uptrend this could be a consolidation before a new leg higher or distribution before a new move lower. As with all price patterns a trader needs to wait for direction before committing to a position. The short-term looks to show that buyers have a small upper hand after holding the support level. A rally and higher low could set up a move to test or break the pattern but a new lower high inside could suggest a new test of the base.
Looking past a Bitcoin breakout using a measured move, depending on breakout direction we could see 13,810 as an upside target and 5070 as a downside target. Measured moves are used for indicative purposes only to gauge an idea of how far the breakout could go based off the width of the pattern.