Although Bitcoin has been unable to find any noteworthy buying pressure in the low-$4,000 region ever since it advanced to this price level, when looking at a larger time frame it becomes apparent that BTC is not currently bearish, despite its persisting bout of sideways trading.
One analyst is quick to point out that Bitcoin is currently caught in an ascending triangle pattern, which result in upwards breaks the vast majority of the time with relatively high average price movements.
Bitcoin Stable Above $4,000, But BTC Lacks Significant Buying Pressure
At the time of writing Bitcoin is trading down nominally at its current price of $4,030. Throughout this past week, BTC has advanced towards $4,100 on multiple occasions, but has not been able to break above this price level.
Although there may be some levels of resistance at $4,100, it is likely that $4,200 is a significantly larger resistance level, as BTC spiraled downwards after briefly touching this price level in late-February.
Bitcoin’s recent price action appears to have developed into a fresh trading range between $4,000 and $4,100, which may persist for the foreseeable future.
Because weekends typically have lower than average trading volume, the markets are more susceptible to incurring volatility, which may mean that the upper and lower bounds of the aforementioned trading range will be tested either today or tomorrow.
Statistics May Signal That Large Upwards Price Swing is Inevitable
Although the current price action is certainly not overwhelmingly bullish, Bitcoin is currently nearing the end of a large ascending triangle, which could mean that a large upwards price surge is imminent.
According to a recent tweet from popular cryptocurrency analyst, Galaxy, a study – dubbed Bulkowski’s study – found that ascending triangles result in an upwards price break 60% of the time, with an average ensuing price surge of 35%.
“According to Bulkowski’s study, more than 60% of ascending triangles with declining volume end up breaking upwards…with an average price rise of 35%. That gives us a target of $5500 BTC once the breakout is confirmed,” he explained.
According to Bulkowski’s study, more than 60% of ascending triangles with declining volume end up breaking upwards
with an average price rise of 35%
That gives us a target of $5500 BTC once the breakout is confirmed. $BTC pic.twitter.com/dThMCtNZDX
— Galaxy (@galaxyBTC) March 23, 2019
As the weekend continues on and as Bitcoin nears the end of this ascending triangle formation, which will likely be reached in mid-April, traders and analysts alike will gain greater insight into whether or not the crypto winter is truly coming to an end.
Featured image from Shutterstock.
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