Bitcoin trades near the triangle apex at $105K while 50MA stays active just below current levels.
A confirmed breakout from the triangle may lead BTC to reach $110K while breakdown targets stay lower.
Price has bounced from $102K support and now tests resistance as traders focus on a directional move.
Bitcoin is trading at $105,420 inside a symmetrical triangle pattern, indicating indecision ahead of a breakout or breakdown. The 50-day moving average (50MA) sits just below the current price and continues to act as dynamic support. Traders are closely monitoring this setup for confirmation of the next big move.
Source: X
As of June 4, Bitcoin has traded within a narrowing price range, forming a series of higher lows and lower highs. The pattern suggests a growing compression phase that often leads to sharp directional movement. Rejection from the upper trendline continues while support remains intact above the $105K level.
Will Bitcoin break through this triangle to start a new rally or fall back under its moving average support?
Triangle Pattern Builds Tension
The symmetrical triangle has formed over several weeks, compressing between the $108,000 resistance and the $102,000 support. Each candle within the 12-hour timeframe marks indecision, with price movement tightening into a tip near the current level.
Support has remained strong above the 50MA, which appears as a green line on the chart and currently aligns with the rising trendline. Price action shows multiple bounces from this area, suggesting buyers remain active at this range.
Resistance continues to cap advances below the $108K level. Previous highs near this point were rejected, forcing price back toward the lower boundary. However, the structure remains intact, awaiting a clear signal in either direction.
50MA Offers Critical Support
The 50-day moving average has been a key factor in maintaining the short-term bullish structure. This dynamic support helps define the lower boundary of the triangle, offering traders a reference for bullish bias as long as it holds.
Bitcoin’s price closed at $105,420, just above both the moving average and support line. That level remains pivotal. Traders are watching for hourly closes above $106,000 to signal a breakout attempt.
If price falls below the 50MA, it may trigger increased selling pressure toward the $102K or $100K zones. This would mark a breakdown from the triangle and could shift sentiment to bearish in the near term.
Breakout Watch Remains Active
A breakout from the symmetrical triangle will likely confirm Bitcoin’s next major move, especially if paired with rising volume. Price targets for a breakout range between $110,000 and $116,000, based on the triangle’s width.
On the downside, failure to hold the 50MA could lead to a fall toward $98,000 or even $95,000 in a sharp correction. The pattern historically leads to fast directional action once price escapes the triangle’s compression.
