Trading Symmetrical Triangle: Bitcoin is creating a tightening triangle pattern, which is an indication of a potential breakout.
Volume Boom: 23% increase in volume indicates an increase in the number of traders, attracting even when there is a slight decrease in the price.
Support and resistance: Support is at $105.5K, and a bearish breakdown may occur below this zone. Some bullish continuation will be achieved when the price rises above $ 110 K.
Bitcoin teeters on the edge of a major move as price action tightens within a classic symmetrical triangle pattern. As the volatility tightens and volumes explode, the market is ready to break to establish the tone of the weeks to come. Recent price action has exhibited a war between upside momentum and increasing sell pressure, which has traders on edge. With Bitcoin sitting at around 106K, everyone is eager to know whether it will explode or explode.
According to Jelle, the market is now consolidating on a symmetrical triangle, which is an indication that a breakdown will soon happen since the price is squeezed between converging trendlines. Since recording a sharp bullish rally in April to May, the asset recorded a local high close to the 110,000 mark earlier this month, after which a sideways trend above an important support range located in the neighborhood of 105,000-106,000 has formed.
The contraction organization indicates the decline in volatility, which is usually an indication of a big price movement. Largely, traders are anticipating a break of the upper resistance trendline to validate a bullish trend continuation, and a violation of support will mean a possible bearish change of direction.
Volume Spikes and Support Tests: Will Bulls or Bears Take Control?
The recent rates of CoinMarketCap show that Bitcoin costs $105,960.38 as of the time of writing, which brings a loss of 0.74% in the last 24 hours. Although the trading amount has declined, it has increased by a massive amount, including 23.09% to 52.44 billion, which implies that traders are very active in the market and may suggest the attention of institutions or whales in the price decline.
The market cap has reached $2.1 trillion, and the Fully Diluted Valuation (FDV) has already reached $2.22 trillion, as people display optimism in the long-term potential of Bitcoin, despite the short-term price fluctuation. It is important to note that the current price is moving closely under 106000 USD, which might serve as a short-term resistance in case the bulls take over again.
The Bitcoin traded to a rapid rise early in the day, reaching around 108.5K and later trading down in a steady retracement through the afternoon period on the intraday chart. The price movement created a good intraday high-low pattern, and there was noticeable resistance at $108K, and the support was getting weak below $ 106 K.
The further declining trend to the close, with low candles and lowering momentum, projects the high selling power and the possible retesting of the lower support levels. Should the retrace fall beyond the $105.5K mark, this may precipitate a breakdown of the larger symmetrical triangle formation on the bigger timeframe, indicating a further downward exposure without intervention by buyers.
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