BTC-“Converging Triangle Pattern”

8-Hour Analysis:

Big Picture: Price is getting trapped in a converging triangle formation, with the prior important 8-hourly EMAs safeguarding price at lower levels and a trendline resistance forming at higher levels. The 8-hourly EMAs, which were previously a big source of resistance, have now been turned into a key holding support for the time being. However, a break on either side of the pattern will result in another trending move.

On the Upside the resistance level of 27,850 is still in place. Price has been unable to mount an aggressive challenge to this level. Strength over 27,850, on the other hand, boosts the upside potential initially back to the channel resistance at 28,040 breaking which brings Bitcoin back towards 28,220 followed by 28,430 and above 28,430 a new range emerges allowing price to try new levels higher.

On the Downside the support levels between 27,350 and 27,300 remain quite solid. The EMA-200 and EMA-250 are currently present in this region, adding to the supports. As long as price can hold this range, any re-tests lower into 26,600 to 26,500 or 26,200 are not certain. Price holding the levels of 27,350 to 27,300 remains critical.