BTC-“Converging Triangle Pattern”

1-Day Analysis:

Big Picture: Bitcoin has been quite volatile in recent trading sessions as the end of the year approaches. The ongoing consolidation band is now forming a converging triangle pattern, which if broken may quickly lead to a major rally in the breakout direction. Price has been quite consistent in following the trendline levels on both sides. Furthermore, because of the conditions, bulls have the upper hand, while sellers will need to break below the solid foundation if they want a deeper bull back. However, volatility is expected to continue.

On the Upside price has broken through the immediate resistance levels of 41,165 and 43,285 a number of times, but their dominance above 43,620 remains lacking, preventing bulls from pushing higher. Strength over 44,000 would now set off a bullish breakout for the pair, initially towards 44,800 and then 45,400 levels.

On the Downside the mid-range level was strong enough to withstand selling pressure while also forcing a substantial price rebound. However, for the session, the support levels are still at 42,800, followed by 42,450, which is the mid-range and has strong dynamic supports as well. Meanwhile, if sellers are to extend the fall further into 41,600, then 40,520, a break below 42,450 is essential.