By Thursday evening, BTC/USD is beginning to test the strength of two important resistance level boundaries. But does this mean that the breakdown of the triangle will occur upward?
The period of calm and uncertainty that has been observed since the collapse of cryptocurrencies in May, on the one hand, shows the indecision of market participants themselves, and on the other, worries both traders and analysts.
The speed at which bitcoin soared from $20,000 to $60,000 initially pleased traders. But now some analysts see such volatility as the bane of the bull market. Jurrien Timmer, Director of Global Macro at Fidelity Investments, believes the bitcoin rally may have started too quickly.
Observing the market as a long-time technical analyst, Timmer shares his view on the recent price dynamics of bitcoin. He notes that after the main cryptocurrency recently peaked, "a 5-wave decline may unfold further."
Explaining his position based on the wave theory, Timmer, like many others before him, agrees that before the market continues to recover, there may be a stronger fall. At the same time, he claims that he is still a bull in relation to bitcoin.
Now, according to the analyst, the cryptocurrency market is in a state where "even big trees shake from time to time."
Observing the opinions of experts, it can be noted that they all boil down to the following:
- cryptocurrencies remain a recognized asset (the bubble is canceled);
- the cost of bitcoin can be calculated in hundreds of thousands of dollars;
- but before that, there will be a correction, and the main question is how deep it will be.
For my part, I would like to note that now the market has no drivers for growth. The news background is very scarce in contrast to previous months, when every now and then there were headlines about Musk's statements or the next recognition of cryptocurrency by large banks.
Therefore, technology remains the main reference point, and everything looks very interesting here. The triangle on the four-hour chart can theoretically be broken in any direction. But now the price is testing its upper border and the resistance level 38,610.88 (red dotted line) for strength. Can an upward impulse occur here? Yes, but for now it looks like a reversal is in the making. This means that the pattern has not yet been fully formed, and the price in the triangle will decline.
In general, an equilateral triangle is still a technical uncertainty, one has to keep an eye out!
