It looks like Bitcoin is in the accumulation phase and we should expect a bullish move pretty soon. There are several bullish patterns and one bearish scenario that we’re going to discuss below.

Coinbase – BTC/USD Short-Term Chart Analysis

bitcoin bulls are gaining strength; price target in a bullish scenario

Chart By: Tradingview

We are looking at the 1-day timeframe. Here we have a bullish triangle, EMAs about to make a bullish cross, a bearish Cypher pattern, and a bearish ABCD pattern. By bearish patterns, I don’t necessarily mean they’re a bad thing as they indicate us when to sell.

What happens next?

Here’s what I think will happen. I believe we’ll reach the price of around $11,650. That’s the target of the Cypher pattern. Therefore we will end with a fake breakout of the bullish triangle and we might come back to $9,300 (support) – $10,000 area. Once we hit that area, we’ll then recover and end up with a double EMA bull cross. In other words, we’ll break the triangle bullish. So here’s what I think: the Bitcoin bulls are gaining strength.

Do we have a price target?

In case of a bullish breakout of the triangle, we are looking at $15,300 (a safe target). If we consider the ABCD pattern as a target, we could touch around $16,200, right in the resistance.

A thing to consider is the Cypher pattern being ignored (we might break the triangle sooner).

Bearish Scenario

If we manage to have a bearish breakout of the triangle, we could see the price of $6,000, or even $5,000. However, that’s very unlikely.

The fear & greed index seems to be moving towards a bullish trend, and Bitcoin’s dominance is at 70%. Not sure how this will affect alts. We might end up waiting a bit more until they recover.

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Please Note: This is not financial advice, it’s just me expressing my own opinion about the market. Please do your own due diligence before investing in such volatile markets.

Previous Altcoin Buzz reports that may be helpful: Factors That Affect Bitcoin & Bakkt Will Launch Monthly Bitcoin Futures.

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