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Analyzing Bitcoin’s Symmetrical Triangle Trading Range

2 mins
Updated by Kyle Baird
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In Brief

  • The Bitcoin price is trading inside a symmetrical triangle.
  • There is resistance and support at $11,200 and $10,200, respectively.
  • Technical indicators in the daily time-frame are bullish.
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Bitcoin (BTC) looks to be approaching the end of its consolidation inside a symmetrical triangle pattern.
A breakout or rejection from this level will be crucial in determining the future trend.

Bitcoin Inside Symmetrical Triangle

The Bitcoin price has been trading inside a symmetrical triangle since reaching a local low of $9,825 on Sept 8. The symmetrical triangle is normally considered a neutral trading pattern. At the time of press, BTC was approaching the point of convergence between support and resistance. The price has returned to levels near the support line multiple times up to this point. Relative to the previous upward movement, the decrease has reversed to the 0.617-0.786 Fib levels, making it a likely level for the correction to end. A decrease below the support line and/or below the $10,380 low (second blue arrow in the image below) would mean that the price has broken down from the triangle, while an increase above the $10,805 high would signal the opposite.
BTC Triangle
BTC Chart By TradingView
The daily chart reveals that the primary resistance and support levels are found at $11,200 and $10,200, respectively. However, a breakout/breakdown that travels the entire height of the pattern would take the price much higher/lower, with targets being set at $11,900 and $9,400.
Bitcoin Future Movement
BTC Chart By TradingView

Previous History

In the daily time-frame, technical indicators have created a combination that has previously led to sustained upward movements. The Stochastic Oscillator has made a bullish cross, and the MACD is close to reaching positive territory. In the previous instances that this transpired, the price increased by 55%, 75%, and 36% once the MACD turned positive.
Bitcoin Daily Increase
BTC Chart By TradingView

Future Movement

In BeInCrypto’s Oct 6 Bitcoin analysis, it was stated that:
“BTC likely began a bullish impulse on Sept 9 and now looks to currently be in wave 3.”
While that still remains the most likely scenario, the presence of the triangle forces us to look at another possible count.
Bitcoin Bullish Impulse
BTC Chart By TradingView
Since the price completed a portion of the downward move on Sept 8, it is possible that the triangle is a larger B wave, which the price completed with yesterday’s $10,805 high (green line). If so, BTC should soon break down from the triangle and decrease towards $9,400. A breakout above the $10,805 high would invalidate this possibility, while a decrease below the $10,380 low (red line) would make it more likely that it is the correct count.
Bitcoin Triangle Count
BTC Chart By TradingView
To conclude, while it is still more likely that the BTC trend is bullish, failure to break the $10,805 high could result in a breakdown from the triangle it is currently trading in. For BeInCrypto’s previous Bitcoin analysis, click here! Disclaimer: Cryptocurrency trading carries a high level of risk and may not be suitable for all investors. The views expressed in this article do not reflect those of BeInCrypto.
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Disclaimer

In line with the Trust Project guidelines, this price analysis article is for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to accurate, unbiased reporting, but market conditions are subject to change without notice. Always conduct your own research and consult with a professional before making any financial decisions. Please note that our Terms and ConditionsPrivacy Policy, and Disclaimers have been updated.

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Valdrin Tahiri
Valdrin discovered cryptocurrencies while he was getting his MSc in Financial Markets from the Barcelona School of Economics. Shortly after graduating, he began writing for several different cryptocurrency related websites as a freelancer before eventually taking on the role of BeInCrypto's Senior Analyst. (I do not have a discord and will not contact you first there. Beware of scammers)
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