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Bitcoin now approaching the apex of a crucial triangle pattern that has contained Bitcoin price action for the past few months

Bitcoin prices have been relatively volatile over the past two weeks, ranging between $ 8,000 and $ 10,000. At press time, the price of Bitcoin has crossed the threshold of $ 9,700, remaining stable in the area of ​​$ 9,700 – $ 9,800. However, Bitcoin is now approaching the apex of a basic triangle pattern that has contained Bitcoin’s price action for the past few months.

Yet the Bitcoin price action has been consolidation from a macro perspective

According to Skew, last week alone, about $ 250 million in liquidated positions on BitMEX due to volatility. And only over the past four hours, more than $15 million worth of positions on BitMEX alone has been liquidated.

bitcoin-now-approaching-the-apex-of-a-crucial-triangle-pattern-that-has-contained-bitcoin-price-action-for-the-past-few-months2

Source: Skew

Considering that the liquidation data from Skew.com only captures BitMEX, millions more, maybe dozens of millions more, worth of positions were likely liquidated on other margin exchanges. Despite the surge, funding rates on Bitcoin futures exchanges are still trading around the baseline of 0.00%. This suggests that neither longs nor shorts are overleveraged, leaving room for BTC to continue to rally to the upside should spot or futures buyers step in.

However, price action has indeed been consolidated from a macro perspective. Bitcoin is currently approaching the top of an important triangle pattern that contains Bitcoin’s price action over the past few months.

Crypto trader Posty shared the chart below, emphasizing that Bitcoin is currently consolidating around the apex of two converging technical levels:

  • The horizontal resistance at $ 10,500
  • An ascending trendline that has supported BTC since the March lows

bitcoin-now-approaching-the-apex-of-a-crucial-triangle-pattern-that-has-contained-bitcoin-price-action-for-the-past-few-months

BTC price chart shared by cryptocurrency trader Posty.

He said:

“I’m still waiting for an HTF move before making a trade. Both sides have been tapped multiple times. I wouldn’t want to guess which one breaks first.”

If Bitcoin tries to break out of the triangle, it will happen in the next few days and weeks as the price continues to tighten before expanding higher or lower.

Analysts are betting on an upward breakout

Analysts are now betting that Bitcoin breaks from this formation, citing technical confluence. According to Bitfinex order book data, there is clear buying pressure at the range of $ 9,500. This is important because order book data has been incredibly accurate in predicting Bitcoin price trends over the past few months. As can be seen in the chart above, the order book data is referred to as the previous four attempts at $ 10,500 and shows that BTC will rise higher after the March low.

Its breakout will most likely determine the trend in the next few months, maybe even lower. That is, if Bitcoin breaks higher, it could be the beginning of a full bull run.

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