- Bitcoin kicked off the week with a bullish tone, hinting at potential upside momentum.
- A breakout from the symmetrical triangle pattern might ignite fresh bullish sentiment.
- However, a potential buying opportunity might present itself in the form of a test of the symmetrical triangle's lower range following the release of US CPI data.
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As I discussed in my previous analysis, Bitcoin's price had been fluctuating for almost a month, forming a symmetrical triangle pattern. During this period, the cryptocurrency bulls stepped in when needed as it dipped below $65,000 last week, thus maintaining the longer-term bullish pattern.
Despite a brief drop on Friday due to employment data, the world's largest cryptocurrency quickly rebounded after testing the triangle's lower boundary and remained in demand over the weekend.
This pushed BTC above the all-important $70K resistance, confirming a breakout above the symmetrical triangle pattern with a daily close to the upside.
On the weekly chart, however, there is still some room for doubt. In that perspective, Bitcoin remains stuck in the resistance zone formed between March 25 and April 1 after reaching $72,000. This could trigger a backtest in Bitcoin, with close monitoring of the $69,500 level in the lower region.
This level, supported by both the upper line of the symmetrical triangle and the 8-day EMA, is critical for the trend's continuation. Maintaining support at $69,500 for the rest of the week could accelerate bullish momentum by breaking the intermediate resistance at $71,500.
Referring to the symmetrical triangle, the peak and bottom distance indicates a potential 15% rise, suggesting Bitcoin could reach $80,000 with a breakout confirmation. Short-term EMA values and the Stochastic RSI are currently bullish.
However, if Bitcoin fails to hold the $69,500 support and closes below it on a daily basis, the bullish setup may be invalidated. In such a scenario, price levels down to $68,500 could act as stops. This represents a 15% bullish expectation towards $80,000 with a risk premium of approximately 3.5% - 5% from $70,500.
Macro data, particularly US CPI data, will impact Bitcoin prices. If CPI aligns with or is lower than expectations, it may increase risk appetite, supporting Bitcoin's upward trajectory. Conversely, if CPI remains high, Bitcoin may test support levels.
The response of internal dynamics in the crypto sector to high CPI will be crucial. A successful retest and maintenance of the $69,500 zone could propel Bitcoin towards $80,000 by April 19. Conversely, if $69,500 breaks with volume sales, the likelihood of a rapid retreat below $65,000 increases.
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Disclaimer: This article is written for informational purposes only; it does not constitute a solicitation, offer, advice, or recommendation to invest as such it is not intended to incentivize the purchase of assets in any way. I would like to remind you that any type of asset, is evaluated from multiple points of view and is highly risky and therefore, any investment decision and the associated risk remains with the investor.