Bitcoin got rejected yesterday around the $39,000-$39,500 upper triangle boundary. Price is pulling back down but still remains inside the triangle pattern. Bitcoin is mostly moving sideways the last couple of weeks after the sharp decline from above $65,000 to $30,000.
Red lines- triangle pattern
As we explained in previous posts, triangle patterns are usually found near the end of trends and precede the final wave of the current trend. Assuming that trend is bearish since price is making lower lows and lower highs after topping around $65,000, we conclude that the most probable scenario is for Bitcoin to break the triangle to the downside. The lower triangle boundary and key support is at $35,500-$35,200. Breaking below it will open the way for a new low in Bitcoin towards $25,000. Resistance is at $38,300-$39,500. As long as price is below this level I prefer to be neutral.
