The Bitcoin(BTC) price held firm at $28500(R444K) and was hammered down by a falling trendline displaying a descending triangle pattern. In the last three weeks, the coin price has been narrowing towards the pattern’s apex, suggesting that a breakout is imminent. However, a divergence in price action and indicator behaviour suggests a possible breakout on either side and thus interested traders must wait for a genuine breakout.
During the early May sell-off, Bitcoin (BTC) lost some critical support levels, including $36000(R560K), $33000(R514K), and $30000(R467K). The coin price dropped to $26350(R410K), a 44.57 % drop from the previous swing high of $48086(R749K) on March 28th.
However, the Bitcoin price settled a little higher than the mentioned low, at $28500.(R444K) Furthermore, for the past three weeks, the coin price has been oscillating above this support in a descending triangle pattern.
This triangle pattern is a bearish setup, with the gradually lower higher indicating that buyers are losing control of the coin. To maintain the current trendline, BTC sellers should eventually breach the bottom neckline of $28500(R444K). If they are successful, the coin price will retest the $26350(R410K) low.
A less likely, but still possible, bullish breakout from the triangle’s resistance trendline may result in a minor bullish pullback.
The RSI slope trending higher throughout the triangle pattern formation and multiple retests to the neckline support the bullish breakout theory of price pattern.
Furthermore, the rising ADX slope stalls at 40%, indicating a reversal in the bearish momentum.
$30500(R475K) and $33000(R514K) are resistance levels.
Levels of assistance are $28500 (R444K)and $26700(R416K).