The Bitcoin price has shown relatively little volatility in the past week. The currency appears to be consolidating around USD 19,000 and it is difficult to say whether there is a bullish or bearish bias. However, what many traders will probably already know is that such a calm period is usually the calm before the storm. According to several technical analysts, the chance is therefore quite high that a major breakout will take place soon.
A big Bitcoin price movement is coming
Since September 19, the Bitcoin price has set three higher lows (higher lows) and two lower highs (lower highs). If we connect these points, using trendlines, we see a symmetrical triangle pattern being formed. This pattern predicts that a major price movement is imminent. However, it is not clear which way the movement will be. This pattern gives a 50% chance of a price increase and a 50% chance of a price decrease.
Should the Bitcoin price break down, it seems quite likely that the price will fall towards USD 17,300. Should the price break out, BTC seems poised to rise towards USD 20,500. If this price increase is accompanied by high volume, the price could even rise to another important technical indicator called the ‘200-week Simple Moving Avarage’. This is around $23,473.