Bitcoin's false breakout after triangular consolidation has attracted investors' attention
As Bitcoin prices undergo triangular consolidation, investors should pay attention to potential false breakout price behavior. Bitcoin's relative strength has fallen back to a low of 40% in this adjustment, which is quite similar to Bitcoin's three adjustments since the beginning of 2023.
According to 10x Research, the agency is redrawing its bull-bear dividing price line, which may change its previous views. The previous dividing line for turning bearish was $68,300.
Triangular consolidation is a common price pattern that usually occurs when the market enters a short-term consolidation phase. In this case, prices fluctuate in a relatively narrow range, forming rising and falling trend lines, and eventually a major breakthrough will occur. However, sometimes prices will have a false breakout, that is, the price briefly falls below the support level, but then quickly rebounds, causing investors to misjudge.
For investors, in the face of false breakouts, they need to be vigilant and not blindly follow the trend. After the price falls below the support level, confirmation signals should be waited for, such as whether the price can continue to be below the support level, whether the trading volume increases, etc. At the same time, you can combine other indicators and technical analysis tools to make a comprehensive judgment to avoid being confused by short-term fluctuations.
