Bitcoin has recently been trading within a symmetrical triangle formation. This formation is characterized by a narrowing price range and increasing compression, where the price moves within a certain range. The upper and lower boundaries of the triangle are important levels that determine potential breakout points. Currently, Bitcoin’s price is trading below its 100-day moving average. This moving average has historically represented a resistance level, and if the price continues to stay below this level, it signals that seller pressure may increase.
Bitcoin, which has not been able to rise above 100 MA, is constantly facing resistance at this level. If the price starts to move permanently above this level, this may indicate that the trend may change upwards. However, staying below 100 MA indicates that sellers may increase the pressure on the market and the price may fall further. The upper and lower limits of the triangle formation determine potential support and resistance levels, and any breakouts at these levels will determine Bitcoin's next move direction.
In a symmetrical triangle formation, it is generally considered a significant direction change signal when the price breaks the upper or lower border of the triangle. An upward break from the upper border of the triangle can signal that buyers are gaining strength and can cause an increase in the price of BTC. On the other hand, a downward break from the lower border can mean that sellers are increasing the pressure on the market and the BTC price may fall further. In order to confirm the accuracy of such breakouts, trading volume should also be taken into account; high trading volume is generally considered a more reliable breakout signal.
When we consider Bitcoin’s current formation and the role of the 100 MA, it can be difficult to determine a clear direction without a strong breakout in the market. Investors need to be patient to verify the accuracy of the formation and the general trend in the market. Breakout points should be monitored and strategic decisions should be made considering the trading volume. Along with technical analysis, it is important to evaluate the fundamental and macroeconomic factors in the market in order to create a more solid investment strategy.