- Symmetrical triangle spotted on the daily chart, the downside seems compelling.
- A failure to close below 11,300, a test of 12k mark to be back on sight.
Bitcoin (BTC/USD), the most dominantly traded cryptocurrency, resumes its weekend tailspin, as the overnight recovery from eleven-day lows of 10,814 fizzled on early Sunday just shy of the 11,500 level. At the press time, the prices are seen flirting with the key support located at 11,300. The No. 1 coin is down nearly 3.50% over the last 24 hours but manages to maintain a market capitalization of about $ 201 billion, down from $ 207 billion seen on Saturday.
For the BTC price outlook over the next fortnight, Sunday’s close is pivotal, as the daily chart displays a symmetrical triangle formation. Over the last 2-weeks, the coin has traveled within the triangle, mostly along the slope of the trendline support while the upside attempts on two occasions faced rejection at the downward sloping trendline resistance.
Overall the bias looks towards the downside, but a triangle bearish break will be confirmed when the prices see a daily closing below the trendline support located at 11,300 levels. Therefore, all eyes remain on this Sunday’s close, as the prices are seen clinging to the above-mentioned key support so far. A daily close below the 11,300 level would open floors towards the upward sloping 50-day Simple moving average (DMA) now at 9,890, below which the 100-DMA at 7,990 will be on the sellers’ radar.
On the flip side, should the prices close above the 11,500/550 levels, the confluence of the immediate resistances and 21-DMA, the bulls would regain control and re-attempt the 12k barrier. A sustained break above the last, the descending trendline resistance of the triangle, placed just ahead of the 13,000 mark, will be back in play.