Bitcoin Facing Critical Decision Reaching Symmetrical Triangle’s Apex: BTC Price Analysis

Since January 2022, Bitcoin has been experiencing significant volatility. The following chart shows an evident supply zone at the $45-46K price area, marking it the range’s top and the main barrier for the BTC price to reach out for a possible retest of the $50-60K channel.

On the other hand, a distinguished demand area at the $33-35K region marks this area as the lower consolidation boundary.

The Daily Chart

Technical Analysis by Shayan

Currently, the price stabilizes above the $37K mark, which turned into the crucial short-term support level. Given the current state of global uncertainty and the existing fear in the market, there is a considerable possibility that bitcoin price will continue to consolidate between these two supply and demand zones, with substantial volatility.

The 4-Hour Chart

On the shorter-term timeframe, the mentioned volatility is explicit. The recent price action indicates an equilibrium between the bears and the bulls at the moment.

As the chart shows, bitcoin moves inside a symmetrical triangle pattern. As the price approaches the apex, it will either break through the upper trendline for a bullish breakout or break below the lower trendline for a bearish continuation.

A break above/below a triangular pattern can be considered potential bullish/bearish signals, especially if followed by a high amount of volume. Hence, bitcoin will test the $37K support level soon if the lower trendline is broken.

Furthermore, the MACD indicator is about to turn positive, increasing the probability of an imminent bullish breakout.

Related:  BTC Stays Above $30,000 Resistance

Onchain Analysis

The Taker Buy Sell Ratio is represented on the following chart, indicating whether buyers or sellers are more aggressive in the order book. Values above 1 imply intense demand in the perpetual futures market, while values below 1 suggest selling pressure.

This indicator showed values above one throughout the recent swing from $33K to $46K, which could be construed as intense demand. However, the price has not been rising considerably this time, which might be a bearish indication. Furthermore, demand appears to be diminishing as this indicator is heading lower towards 1.


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Cryptocurrency charts by TradingView.

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