The Bitcoin price has been in a consolidation phase for weeks now, with prices virtually moving nowhere. However, we do believe this consolidation phase is about to end!
We can see the price compression growing stronger as Bitcoin approaches the apex point in the Converging Triangle Pattern that has formed in the 1-hour timeframe. At this Apex point, the amount of momentum already built into the price would be too much for Bitcoin to remain within this tight consolidation range.
Once this happens we can expect to see a massive breakout in the Bitcoin price!
The question now is “in what direction should we expect to see the Bitcoin price breakout?”
In this Bitcoin analysis, we will be talking about the possible price breakout scenarios we should expect in the coming days.
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Bitcoin Price Breakout. What Should We Expect?
When it comes to a converging triangle pattern, the price can break out in any direction it wants. And for Bitcoin right now, that is very possible.
However, there is a very high probability that we see one last move to the downside before the price reverses. The image below is a typical example of what that could look like and it is currently our favorite price scenario for Bitcoin.
If this plays out, we will likely see the Bitcoin price breakdown from the Converging Triangle Pattern and head lower before forming something like a Double Bottom Pattern and then reversing in the coming days.
What Is The Play Now?
The play for now, is to wait for and anticipate the potential price breakout from the Converging Traingle Pattern to the downside.
Once this breakout occurs, we can take advantage of this potential move lower for a short-term sell-trade in Bitcoin. But this sell trade is only valid once the BTC price breaks and closes below the converging triangle pattern in the 1-hour timeframe.
Until that happens, we stand and side and continue to wait for the completion of the pattern.
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