Bitcoin remains below key short-term resistance of $40,000 but also above the major low around $30,000. Price has made no real progress over the last few sessions as price mostly moves sideways. Price has formed a triangle pattern and traders need to be cautious when price breaks out of the pattern.
The upper triangle boundary is at $38,600. A break above it would be a bullish signal. The lower triangle boundary is at $34,500. Breaking below it would be a bearish signal. Price is moving sideways but recent trend was bearish. Triangle patterns are usually found near the end of trends. So for now I believe that the most probable outcome would be a break to the downside but with limited potential. Nevertheless traders should focus on the triangle boundaries in order to get a clearer message about trend direction.
