Bitcoin's 'Triangular Consolidation' Is Bullish: Technical Analysis

Such consolidations generally end with an upward breakout, one observer said.

AccessTimeIconOct 31, 2023 at 11:05 a.m. UTC
Updated Nov 1, 2023 at 3:35 p.m. UTC
10 Years of Decentralizing the Future
May 29-31, 2024 - Austin, TexasThe biggest and most established global hub for everything crypto, blockchain and Web3.Register Now

Bitcoin (BTC) appears to be consolidating into a triangular pattern, offering a positive outlook for the weeks ahead.

The leading cryptocurrency by market value has carved out higher lows and lower highs between $33,000 and $35,0000 in the past seven days, forming a triangle on the bitcoin price chart.

Analysts and traders study price patterns to gauge momentum strength and forecast changes in market trends. Triangles tend to be continuation patterns, representing a pause that refreshes the preceding trend, which is bullish in BTC's case. The leading cryptocurrency rallied from $26,500 to $35,000 before starting its triangular behavior.

"Bitcoin is forming a triangle on the daily chart. It is generally believed that such consolidation formations end with an upward breakout," Alex Kuptsikevich, a senior market analyst at FxPro, said in an email.

According to Kuptsikevich, a move above $35,000 would confirm a bullish triangle breakout, signaling a continuation of the rally from $26,500.

Note that while triangles usually resolve in the direction of the preceding trend, they can sometimes end with a downside breakout, indicating a bearish trend reversal. Hence, it's imperative traders closely follow the price action over the next few days.

Edited by Sheldon Reback.

Disclosure

Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is an award-winning media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. In November 2023, CoinDesk was acquired by Bullish group, owner of Bullish, a regulated, institutional digital assets exchange. Bullish group is majority owned by Block.one; both groups have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary, and an editorial committee, chaired by a former editor-in-chief of The Wall Street Journal, is being formed to support journalistic integrity.

Omkar Godbole

Omkar Godbole is a Co-Managing Editor on CoinDesk's Markets team.


Learn more about Consensus 2024, CoinDesk's longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.