BTC Trapped In A Retest Phase; Should You Invest?


Following a decisive breakout from the $45000 resistance on March 27th, Bitcoin(BTC) price has remained highly volatile over the past week. However, this retest phase resembles a symmetrical triangle pattern in the shorter time frame, which could kickstart the bullish rally again. Moreover, the Microstrategy($MSTR) accumulates 4167 Bitcoin at an average price of $45714. 

Key points: 

  • Three consecutive monthly green candles appear on the BTC chart
  • The weekly chart shows lower price rejection at $45000 flipped support
  • The intraday trading volume in Bitcoin is $31 Billion, indicating a 5% gain

Source-Tradingview

The ascending triangle pattern carried the Bitcoin(BTC) accumulation phase during the last quarter. A bullish breakout from $45000 resistance triggered the Mark-up period, and the rally reached a high of $48182 on March 30th.

Since last week, the coin price remained trapped in a retest phase, trying to sustain above the breached resistance. However, this uncertainty in the market has formed a symmetry triangle pattern in the 4-hr time frame chart. 

A bullish breakout from this continuation pattern would renew the bullish momentum and allow buyers to breach the $48000. A follow-up breakout and closing above this resistance would suggest a resumption of the bullish rally to its next target at $52000.

On a contrary note, the triangle poses a fallout possibility which could tumble the BTC price below the $45000 support. 

  • Resistance level- $48000, $52500
  • Support level- $45000, $42000

Technical indicator- 

The 200-day EMA aligned with the $45000 support maintains a bullish tendency for Bitcoin. Moreover, the rising 20-and-50 EMA slopes may soon reach the coin price from below to strengthen the bottom support. 

The RSI slope reverts from the overbought neckline(80) on March 30th and nosedive below the 14-SMA. However, this minor pullback brings back stability in the market to extend another leg-up. 

Disclaimer

The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.

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