Bitcoin is struggling to extend its two-day winning trend and remains coiled in a narrowing price range. The cryptocurrency is currently trading 2% lower on the day near $36,600, having faced rejection around $37,900 during the Asian hours.
The cryptocurrency dropped 35% in May, registering one of its biggest monthly drops on record. Prices are still up 25% on a year-to-date basis.
- Bitcoin's recent price congestion between $30,000 and $40,000 has taken the shape of a symmetrical triangle.
- The daily chart MACD histogram has crossed above zero, signaling scope for a triangle breakout.
- Bounce, if any, is likely to be short-lived, as the weekly chart MACD remains biased bearish below zero.
- "Intermediate-term momentum is to the downside, so we assume the rebound will be short-lived, giving way to another lower high within the corrective phase," Katie Stockton, founder and managing partner of Fairlead Strategies, said in a weekly research note published on Monday.
- The immediate resistance comes at $38,900 (upper end of the triangle), followed by the 200-day simple moving average at $41,252.
- The lower end of the triangle may offer support ahead of the psychological level of $30,000.