Bitcoin (BTC) continues to traverse sideways, while holding the very important $58,000 horizontal support level. However, a decision point is approaching, as the $BTC price nears the end of a triangle pattern. A breakout to the upside is the more likely scenario.
$BTC continues to hold critical $58,000 level
Following the huge dump down to $49,000, the $BTC price made a v-shaped recovery - briefly hitting $62,700. However, since that time, the price has been consolidating, while managing to hold above the big support level of $58,000.
Triangle or bull flag pattern?
This consolidation movement has formed a triangle pattern, the top point of which was the last local high of $70,000, achieved at the end of July. The triangle should break in the next couple of days, and given that the $BTC price is generally trending higher, the breakout could be to the upside.
Source: TradingView
Should the breakout occur to the upside, the near term targets would be $60,000 and $61,000, and perhaps $BTC could then work up towards the top of the channel once again.
Source: TradingView
The current chart pattern could also be drawn as a bull flag, the flagpole of which begins with the long wick down, when bulls bought up $BTC after the Japanese stock market crash. A measured move for this pattern produces a price of $73,000.
Widening channel still bullish
Source: TradingView
Zooming out, it can be seen that the $BTC price structure is forming a widening channel. This is also a bullish pattern, and it would be more likely than not that $BTC breaks out of this to the upside.
It can also be noted just how important it is for the $BTC price to hold the support at $58,000. Should a breakdown occur, that also confirms, there is support at $56,000, but then if that broke, it would probably mean a return to the bottom of the channel again. This would be around the $50,000 level.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
