In the last few hours, Bitcoin has bounced off the $37,100 price area to post a local high of $39,476, and a few dollars shy of the $40k resistance level. With this move, Bitcoin has managed to break out of a symmetrical triangle that had formed as a result of the last few weeks of selling activity that resulted in a local bottom at $30k.
Bitcoin Needs to Retest the 200-day MA or Risk Falling to $28k
In a recent Twitter commentary, Bitcoin and crypto analyst, MagicPoopCannon, pointed out that a breakout from the aforementioned symmetrical triangle could ultimately lead to BTC retesting the crucial 200-day moving average that has been elusive for the last three weeks.
He also cautioned that a failure by BTC to regain this moving average will result in a breakdown of the symmetrical triangle, thus sending Bitcoin to $28k.
Magic’s analysis of Bitcoin can be found below together with a chart he shared to demonstrate the current BTC symmetrical triangle.
BTCis testing the top of a symmetrical triangle. A breakout should produce a rally to retest the 200 day moving average. A failure, will likely result in a breakdown of the triangle, sending BTC towards the 61.8% retrace, just below $28,000.
Bitcoin is at an Inflection Point – Aksel Kibar
In a similar analysis of Bitcoin, veteran trader and chartist, Aksel Kibar, also cautioned that the longer Bitcoin stayed within the current symmetrical triangle, the higher the chances of a breakdown to lower levels.
According to Mr. Kibar, Bitcoin is currently at an inflection point with a rebound or breakdown having equal odds at happening. An excerpt of his analysis can be found below.
Both the average and the latest consolidation is taking place around the same area. I call these type of technical levels/areas; inflection points. Rebound or a breakdown around these levels can be conclusive.
Another point: The longer the price remains inside the latest triangle consolidation the higher the chances the move out of it will become a failure or not follow the guidelines of a symmetrical triangle.