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20.01.2022 10:26 AM
Bitcoin triangle pattern could clear up direction

Bitcoin is moving sideways in the short term. The price action developed a triangle pattern, a valid breakout from this formation could bring great trading opportunities. BTC is trading at 42,091.85 at the time of writing. In the short term, it has changed little, personally, I'll wait for a fresh opportunity.

In the last 24 hours, BTC/USD is up by 1.75%, while in the last 7 days, the crypto is down by 3.93%. Technically, the current sideways movement could announce strong movements. Escaping from the triangle pattern could bring us a clear direction.

BTC/USD Seems Undecided!

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BTC/USD continues to challenge the 41,967.50 static resistance. The pressure is stil high after registering only false breakouts above the weekly pivot point (42,368.74). A downside breakout from the current triangle may announce potential deeper drop, while an upside breakout could signal that the downside movement ended.

In the short term, it could continue to move somehow sideways. You can see that BTC/USD registered a false breakdown with great separation below the media line (ml) signaling exhausted sellers.

BTC/USD Prediction!

Personally, I will look for new buying opportunities if BTC/USD registers an upside breakout from the current pattern and after making a valid breakout above the descending pitchfork's upper median line (uml).

40,000 psychological level stands as a strong downside obstacle. A valid breakdown from this pattern could signal a potential drop towards this level.

Ralph Shedler,
Analytical expert of InstaTrade
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