A symmetrical triangle heralds BTC rally to $33K
Bitcoin price has recorded lower highs and higher lows since turning away from nine-month highs on April 14. All recovery attempts have been continuously rejected by the resistance line of a symmetrical triangle since then. Accordingly, BTC appears to be in a sad sideways price action without any clear directional bias.
Bitcoin at a turning point as it braces for an 18% rally
Market participants were waiting to see the direction BTC price would take after experiencing a notoriously challenging trading environment in April. There have been breakouts, bull traps and sell-offs, which are now being consolidated into a narrative that would make sense for Bitcoin holders.
The price action has formed a series of higher lows and lower highs leading to the appearance of a symmetrical triangle on the daily chart. If the technical setup plays out correctly, traders could witness a 13.11% rally for the flagship cryptocurrency on the upside from the triangle resistance line. However, the movement can be in either direction.
At press time, BTC was changing hands at $28,262 with a bullish bias. If bulls manage to produce a daily candlestick close above $28,756, embraced by the 50-day Simple Moving Average (SMA), it could rise to confront recovery from the upper trendline of the triangle at $29,482.
A rise above this level would confirm a bullish breakout towards the optimistic technical chart pattern target of $33,385. This would represent an 18.5% upside from today’s price.
BTC/USD Daily Chart
The Relative Strength Index (RSI) has crossed the midline of the positive area. The price strength of 52 suggested that the buyers had started to take control of the price, justifying the optimistic outlook.
BTC’s upside was also supported by growing positive sentiment in the crypto market. Data from Alternative, a firm that analyzes “feelings and sentiments” around Bitcoin, revealed that social support has intensified for the crypto.
In the image (below), the Bitcoin Fear and Greed Index is still within the “Greed” zone despite the value having fallen slightly from last week and last month.
According to Alternative, the position of the social sentiments within the “Greed” zone is an indication that more investors are still buying. It also points to growing investor interest in the major crypto.
Bitcoin Fear and Greed Index
Recovery could be realized if interest in the proof-of-work (PoW) crypto across social media platforms continues to grow.
The $28,143 level, embraced by both triangle ascending lines, holds short-term support for Bitcoin. As long as this support remains intact, buyers will have enough time to push for an uptrend.
On the downside, a break below the aforementioned level could see the sellers pushing the price below the triangle’s lower trend line towards the April 24 swing at $28,600. Such a move would bring the bearish scenario into the picture. A 13% decline could occur, landing BTC back in the $24,000 zone.
