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
- Current Price on CoinGecko at the moment of writing is: $10,560
- Resistance levels: $16,200
- Support levels: $9300 – $10000, $8,300-400
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).
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.