This lackluster price action comes close on the heels of Bitcoin’s recent surge up to highs of $7,500, with the resistance it met here proving to be insurmountable.
It is important to note that BTC could be coiling up for a major movement in the near-term, as the benchmark cryptocurrency is currently nearing the apex of a large triangle formation that is likely to catalyze a major movement.
Bitcoin’s Consolidation Likely to Come to a Jarring End
At the time of writing, Bitcoin is trading up marginally at its current price of $7,300, which is around the point at which it has been trading at for the past several days.
Earlier today, the crypto did see some heightened levels of volatility that led it to plunge down towards $7,000 before posting a sharp rebound back up to its current price levels.
This movement was similar to that seen this past Tuesday, when BTC sharply dipped to $7,100 before rebounding.
It is clear that the crypto is now caught within a relatively wide trading range between roughly $7,100 and $7,400, and which of these levels breaks first should offer insight into where the crypto will trend next.
It’s a strong possibility that this range will be broken in the near-term, as Galaxy – a popular crypto analyst – explained in a recent tweet that the crypto is currently nearing the apex of a triangle formation that is likely to soon “explode.”
“This squeeze is insane. Explode already will ya’?” He stated while referencing the below chart.
This squeeze is insane
Explode already will ya’?$BTC pic.twitter.com/YkSUIt9sHV
— Galaxy (@galaxyBTC) April 9, 2020
Will This Next Movement Favor Bulls?
Although ascending wedges like the one seen above can often be categorized as being bearish, it is important to note that Galaxy does seem to believe the next big movement will favor bulls.
In a tweet from yesterday, he noted that the current “dream trade” that he is waiting for is to long Bitcoin at $6,800, with an upside target at $9,000 – as reported by NewsBTC yesterday.
“$6800 – $9000 is the dream trade I’m waiting for. There is also a slight chance we can break the green line today/tomorrow and just go for it. Either way, I’m patiently waiting to start riding the train to 9K,” he explained.
$6800 – $9000 is the dream trade I’m waiting for.
There is also a slight chance we can break the green line today/tomorrow and just go for it.
Either way, I’m patiently waiting to start riding the train to 9K.$BTC pic.twitter.com/kxJ8LyRacL
— Galaxy (@galaxyBTC) April 8, 2020
In order for this bullish prediction to come to fruition, it is imperative that buyers are able to surmount the resistance that has been established around $7,500, as another rejection here could confirm a bearish “double top” formation that sends BTC reeling lower in the days and weeks ahead.
Featured image from Shutterstock.