A look at Bitcoin as the crypto works towards an October 10 decision deadline – Bitcoin (BTC/USD)

Bitcoin BTC/USD bounced nearly 3% higher in line with the general market on Monday, which rose about 2.7% higher.

The top cryptocurrency was muted over the weekend, falling slightly on lower-than-average volume, indicating consolidation.

Bitcoin’s latest consolidation has taken place within a triangle formation on the daily chart.

A symmetrical triangle pattern is created when a stock forms a series of lower highs and higher lows between a descending and an ascending trend line, which meet on the right side of the chart to form a top. The pattern indicates that the bulls and bears are in equal control.

A symmetrical triangle is often formed at lower-than-average volume and shows a decrease in volatility, indicating consolidation. The decreasing volume is often followed by a sharp increase in volume when the stock breaks up or down from the pattern, which should happen before the stock reaches the top of the triangle.

• Aggressive bullish traders may choose to buy a stock in a symmetrical triangle when the security reverses on the lower rising trendline, with a stop placed if the stock declines at the upper descending trendline of the pattern. More conservative traders can wait for the stock to break up bullishly from the pattern on higher-than-average volume.
• Aggressive bearish traders may choose to trade opposite the bulls, entering a short position on a rejection of the upper descending trendline and covering the position if the stock finds support at the lower trendline. Unlike the bulls, conservative bearish traders can wait for the stock to break down from the lower trendline on higher than average bearish volume.

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The Bitcoin Chart: Bitcoin has been trading within a symmetrical triangle since September 26, but has remained above the lower rising trendline since September 21. Bitcoin is set to meet the top of the triangle approx. October 10 and bearish and bullish traders can look for the crypto to break up or down from the pattern on higher than average volume to indicate that the pattern was recognized.

• Over the past three days, volume has steadily increased, indicating that the crypto is regaining interest. If Bitcoin closes the trading day near its intraday high, the crypto will hit a bullish Marubozu candlestick, which could indicate that higher prices will return during Tuesday’s 24-hour trading session.
• If Bitcoin goes lower on Tuesday, bullish traders will want to see the crypto hold above the lower rising trendline of the pattern. Bearish traders will want to see Bitcoin break down from the triangle pattern, which may indicate that the consolidation period is over and a downtrend will occur.
• Bitcoin has resistance above at $19,915 and $21,313.41 and support below at $17,580 and $16,000.

See also: Bitcoin, Ethereum, Dogecoin Slide: Analyst Warns of ‘Very Volatile’ Week Ahead