Bitcoin struggles to hold ascending triangle pattern

Bitcoin is trading lower after dipping below a critical level, with extended losses potentially bringing prices to around $8,100

Bitcoin is set to turn bearish as price breaks below $9,300 to nosedive past key support. Despite its resilience since the March market crash, the price of Bitcoin has dropped to lows of $9,050 in the past 24 hours after recently testing highs of $10,500.

It is a move that gives bears a likely opportunity to mount a challenge that could plunge the cryptocurrency below the critical ascending triangle pattern.

The pattern is a key bullish technical indicator for macro prices, so a break below would invalidate the bullish momentum that has held since early May.

Coinbase 5

Bitcoin’s 3.3% decline means it is trading below the ascending triangle support. Price breakdowns below these levels usually mean a drop matching the triangle’s height. The current pattern puts the potential retracement at a height equivalent of $1,800, which means prices could continue to slip down to levels around $7,500.

Bitcoin struggles to hold ascending triangle pattern 1
Fig 1: Chart of Bitcoin price showing decline past the Ascending Triangle. Source: TradingView.com

Bitcoin’s price has also moved below the 50-day moving average, which held as support in a tight range where prices have oscillated between $9,900 and $9,300 over the past month.

That leaves any further downsides relying on support at the 100-day and 200-day moving averages. The 200 MA falls at around $8,100. An upside from this bottom, however, is set to see prices rise to bring back highs of $11,800.

Bitcoin struggles to hold ascending triangle pattern 2
Fig 2: Bitcoin price chart showing a break below 50 MA: Source: TradingView

On-chain metrics suggest a price breakdown is likely

Several on-chain metrics suggest things are turning dire for Bitcoin’s price. BlockTree’s Charlie Morris has noted that the price is likely to drop because network velocity, transaction value, average transaction size and network fees are all down.

The 1-week miner rolling inventory (MRI) is at 85% while it’s up to 94% in the past 24 hours according to data from on-chain analysis platform ByteTree. The 5-week MRI is at 103% to mean miners have sold more bitcoins than they mine. If the figure rises to these levels in the short term, it could be difficult for prices to hold up above $9k.

Meanwhile, the number of addresses holding more than 0.1 bitcoins has crossed 30 million. A dip at current prices may present another buying opportunity for long term investors.

Bitcoin struggles to hold ascending triangle pattern 3
Fig 3: Chart showing surge in the number of addresses holding +0.1 bitcoins. Source: Glassnode
Bitcoin struggles to hold ascending triangle pattern 4
blank
About the author

E-Crypto News was developed to assist all cryptocurrency investors in developing profitable cryptocurrency portfolios through the provision of timely and much-needed information. Investments in cryptocurrency require a level of detail, sensitivity, and accuracy that isn’t required in any other market and as such, we’ve developed our databases to help fill in information gaps.

Related Posts

blank

E-Crypto News Executive Interviews


blank

bitcoin
Bitcoin (BTC) $ 39,798.00
ethereum
Ethereum (ETH) $ 2,644.37
tether
Tether (USDT) $ 1.00
binance-coin
Binance Coin (BNB) $ 335.60
cardano
Cardano (ADA) $ 1.33
xrp
XRP (XRP) $ 0.753292
usd-coin
USD Coin (USDC) $ 1.00
dogecoin
Dogecoin (DOGE) $ 0.206342
polkadot
Polkadot (DOT) $ 18.34
binance-usd
Binance USD (BUSD) $ 1.00
USD
EUR
GBP
bitcoinBitcoin (BTC)
$ 39,798.00
ethereumEthereum (ETH)
$ 2,644.37
tetherTether (USDT)
$ 1.00
bitcoin-cashBitcoin Cash (BCH)
$ 558.09
litecoinLitecoin (LTC)
$ 144.34
bitcoinBitcoin (BTC)
33.536,70
ethereumEthereum (ETH)
2.228,34
tetherTether (USDT)
0,842673
bitcoin-cashBitcoin Cash (BCH)
470,29
litecoinLitecoin (LTC)
121,63
bitcoinBitcoin (BTC)
28,621.37
ethereumEthereum (ETH)
1,901.74
tetherTether (USDT)
0.719166
bitcoin-cashBitcoin Cash (BCH)
401.36
litecoinLitecoin (LTC)
103.80

Automated trading with HaasBot Crypto Trading Bots

Crypto Scams

blank
The World’s Most Infamous Crypto Hacks and Scams
July 31, 2021
Cryptocurrency Exchanges
Cryptocurrency Exchanges and the Plague of Scams and Bans
June 29, 2021
blank
What Role Do Cryptocurrencies Play In The Era Of Ransomware Attacks?
June 9, 2021
Crypto Scams On The Rise As Market Enters Bull Cycle
Crypto Scams On The Rise As Market Enters Bull Cycle
December 22, 2020
Harpreet Singh Sahni perpetrated the Plus Gold Union Coin (PGUC) scam
Sydney Concert Promoter Harpreet Sahni Involved In $50M Crypto PGUC Scam
November 2, 2020

Blockchain/Cryptocurrency Questions and Answers

Short-Sell Cryptocurrency
How to Short-Sell Cryptocurrency: A Brief Overview
July 17, 2021
Klaytn
What Is Klaytn (KLAY) And How Does It Work?
July 16, 2021
Cryptocurrencies
Our Crypto Roundup Interview Asks- Do Cryptocurrencies Have a Future?
July 15, 2021
Solana
What Is Solana (SOL) And How Does It Work?
June 26, 2021
blank
What Is Plethori Platform And How Does It Work?
June 12, 2021


CryptoCurrencyUSDChange 1hChange 24hChange 7d

bitcoin
Bitcoin (BTC) $ 39,694.00
ethereum
Ethereum (ETH) $ 2,654.43
tether
Tether (USDT) $ 1.00
binance-coin
Binance Coin (BNB) $ 334.81
cardano
Cardano (ADA) $ 1.33
xrp
XRP (XRP) $ 0.748825
usd-coin
USD Coin (USDC) $ 1.00
dogecoin
Dogecoin (DOGE) $ 0.204831
polkadot
Polkadot (DOT) $ 18.52
binance-usd
Binance USD (BUSD) $ 1.00