Bitcoin is ranging below EMA 20 and 50 on the 4-hour chart – slowly moving towards a breakout that can trigger an extremely bearish move. As mentioned yesterday, Bitcoin has formed a triangle pattern inside a parallel falling channel of lower lows and lower highs. Bitcoin is currently testing the base of the triangle with huge red candles. If Bitcoin fails to hold this support level, it can fall as low as $34,000, fib 1.618 – dwindling more than 15%. In order to overcome this bearish pattern, Bitcoin needs to break the previous high of $44,000, fib 0.786 – which now acts as a local resistance level.
