Bitcoin Forms Short-Term Symmetrical Triangle After Weekend Drop

• Bitcoin surged 8% over the weekend as it pushed higher from $33,000 to reach as high as $35,600.
  
  
• The coin hit resistance at the upper angle of a triangle and headed lower to $34,300.
  
  
• The bulls are attempting to defend the lower boundary of this triangle.
  
  

Bitcoin saw another whipsaw-like trading period over the weekend as the cryptocurrency pushed higher from $33,000 and moved higher inside an ascending price channel. It continued to climb until resistance was found at around $36,500, provided by the upper boundary of a symmetrical triangle pattern.

Since hitting the resistance, BTC rolled over and headed lower as the buyers attempt to defend the support at $34,180, provided by a .382 Fib and the lower boundary of the triangle.

Bitcoin Price Analysis

What has been going on?
Starting with the daily chart above, it is clear that Bitcoin is trading inside a symmetrical triangle formation. The coin double-bottomed last week and surged higher into the upper boundary of the triangle. It rolled over from there as July started to trade as the market headed into the lower boundary.

BTC is currently approaching the triangle’s apex, where a breakout can be expected in either direction.

The Volume Profile shows that there is quite some resistance between $35,600 and $38,000. BTC would also need to break the mid-May resistance at $42,000 before turning bullish again.

BTC broke the ascending price channel it was trading within last week today on the short-term side of things. It had reached the resistance at the upper angle of the triangle at around $35,600 and rolled over to break beneath the price channel.

BTC is now trading at support provided by the lower angle of the triangle and the .382 Fib Retracement at around $34,180.

Bitcoin price short-term prediction: NEUTRAL
Bitcoin still remains neutral in the short term and would have to break above resistance at $42,000 to start to turn bullish again. On the other side, a daily closing candle beneath $30,000 would be required to turn the market bearish.

Looking ahead, if the sellers push beneath the support at the lower angle of the triangle, the first support lies at $33,415 (.5 Fib Retracement). This is followed by support at $33,000, $32,650 (.618 Fib Retracement), $32,000, and $31,500. Added support lies at $31,155 (long term .886 Fib Retracement), $30,600, and $30,000.

Where Is The Resistance Toward The Upside?
On the other side, the first resistance lies at $35,000 (bearish .5 Fib Retracement). This is followed by the upper angle of the triangle, $35,600 (weekend resistance), $36,000, and $35,515 (bearish .618 Fib Retracement).

If the buyers continue to break $37,000, resistance is located at $37,425 (1.414 Fib Extension), $38,000, and $38,620 (bearish .786 Fib Retracement).

Added resistance lies at $39,000 and $40,000.