The Bitcoin price is currently trading in a Converging Triangle Pattern that is very visible from the 4-hour timeframe. This pattern offers us key support and resistance levels to work with and expect the Bitcoin price to respect in the coming days.
Right now the Bitcoin price is gradually making its way back to the support/base channel of the Converging Triangle pattern on the 4-hour timeframe
Once the price gets to this key region, we expect to find support before bouncing back up.
In this Bitcoin analysis, we will be talking about the key levels we are watching as well as our bearish target for this coming bearish move down.
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Bitcoin Converging Triangle Pattern
The converging triangle pattern is a popular price structure used by professional traders around the world. This pattern usually forms during ranging and sideways market. And this sideways market is currently playing out on Bitcoin.
This pattern is very important because it helps us better understand how the ranging market is playing out by providing us with key support and resistance regions to work with.
As far as this ranging market continues, we can expect to see the Bitcoin price continue to touch these support and resistance regions. And this in turn provides us with high-quality trade setups and targets to work with for now.
What Is Bitcoin Doing Now?
The Bitcoin price is gradually making its way back to the base channel support in an ABC price structure format.
If this bearish prediction is correct, we expect to see the C leg of the bearish move play out in the coming days. Where the length of the C leg is equal to the length of the A leg.
Taking Advantage Of This Move Down
To take advantage of this move down, the key level to watch for is the $38,251 minor support on the 4-hour timeframe.
Once price breaks through this minor support, it would confirm the move down as resumed and we can expect to see about a -7% dump in the price of Bitcoin back towards the $35k price region.
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