Bitcoin is currently trading within an ascending triangle pattern. It is a bullish chart pattern which means the price is likely to move upwards. It forms higher lows while facing resistance at a certain level.
Bitcoin Holds Above Support, Faces 100-Day Resistance
Currently, the price is hovering just above an important ascending trendline, which has provided support. If the price gets to this trendline and then moves up, this means that the support is strong and we may experience a price increase.
But there is also a strong resistance at 100 moving average. This moving average is another significant level that numerous traders follow. If this barrier is crossed by Bitcoin, this would imply an upward movement.
Bitcoin’s Price Drop Below Trendline May Signal Correction
On the other hand, if the price drops below the upward trend line it can lead to a correction in the market. This means that the price could drop further, putting the trend from a bullish trend position to a bearish trend. If the price goes below the trendline, it will indicate that the support level is not enough, and the prices can go down even lower.
Lastly, it can be argued that the future of Bitcoin is uncertain and the cryptocurrency is currently at a turning point. The traders have identified the upward trendline and the 100-day Moving Average as key points of focus. The following days could prove to be pivotal for Bitcoin’s rise or fall.
