Bitcoin price is consolidating inside a symmetrical triangle and has not given a clear indication of the next move
Bitcoin price is consolidating inside a symmetrical triangle and has not given a clear indication for the direction of the next move. Since reaching a local low of $9,825 on Sept 8, the BTC price has been trading inside a symmetrical triangle and is quickly approaching the point of convergence between resistance and support. At press time, BTC is trading around at $ 10.562, a slight decrease of nearly 3% in the past 24 hours.
BTC/USD 4-hour chart | Source: TradingView
Bitcoin price continues inside a symmetrical triangle
BTC headed south yesterday and dipped to $10,525. Although Bitcoin started recovering rather rapidly, it dropped to $10,550 once more. However, BTC bulls interfered and the asset has been slowly increasing in value since then. After the dip, Bitcoin gained traction and registered a daily high of $10,680 (on Binance). The asset lost some steam in the next few hours and currently trades around $10,630.
Besides the fact that the triangle is normally considered a neutral pattern, technical indicators are also neutral. This is illustrated by the RSI movement above and below 50 and the MACD movement above and below 0. This is customary during consolidations prior to a big move in one or the other direction.
The shorter-term 30-minute chart is more bearish as it shows a rejection from both a descending resistance line and a minor resistance area found at $10,670. Since there is no clear support structure, it would make sense for BTC to decrease towards the closest support area at $10,540.
BTC likely began a bullish impulse on Sept 9 and now looks to currently be in wave 3. If the count is correct, BTC would currently be in sub-wave 3 (blue), which is likely to become extended and end between $11,932-$12,256. A decrease below the $10,380 low on Oct 2 would invalidate this particular count.
If the count is invalidated, the most likely possibility would be a bearish triangle. The movement inside the triangle would suggest that an entire A-B-C-D-E formation (in red) is complete, and the price will soon break down from the symmetrical triangle to head towards new lows.
An increase above the wave E high at $10,800 (red line) would invalidate this wave count.
To conclude, the direction of the future movement cannot be accurately determined until BTC moves out from its current pattern. Whether the price breaks over $10,800 or dips below $10,380 first will be crucial in determining the trend.
Bitcoin’s minor 24-hour increase corresponded with the price developments on Wall Street once again. The S&P 500 ended Wednesday’s trading session with a 1.7% gain, while the Nasdaq Composite and the Dow Jones Industrial Average went up by about 1.9%.
The secrets on how quickly turned a small amount of BTC into $100,000
In an episode of the Market Meditations podcast hosted by crypto trader Koroush AK, SalsaTekila highlights how the power of compounding gains allowed him to become one of the leading traders in the Bybit trading competition.
“The biggest point is that those competitions are not necessarily your typical trading journey. It’s oftentimes you have to take big risks relative to a small account. You have to play your cards right. Start with the minimum amount that they allow you to start with and try to build something that will compound into a huge ROI (return on investment) percentage… If you start with 0.1 BTC, then you can scale the size pretty quickly if you get a nice win streak.”
The crypto strategist also explains the role that risk played throughout his journey en route to growing 0.19 BTC into eight BTC in just three weeks:
“You have to start taking big risks from the start because the winners, as we have seen, will have 4,000% ROI. So if you’re trading your typical 2% account risk per trade, you’re not going to make it into the leaderboard. No chance… Basically, you have to take huge risks.”
In SalsaTekila’s eyes, winning Bybit’s trading competition required more than just financial risk. That can be seen, with Bitcoin, whether it decreases or increases, if you understand the market well, have the right investment method, you will be the winner.
You can see the Bitcoin price here.