Bitcoin is preparing to break out from a bearish pattern

Bitcoin is ranging below EMA 20 and 50 on the 4-hour chart – slowly moving towards a breakout that can trigger an extremely bearish tide.

Bitcoin price today is $42,186.16 USD with a 24-hour trading volume of $24,744,086,642 USD. Bitcoin is up 1.23% in the last 24 hours, with a market cap of $798,750,841,765 USD. It has a circulating supply of 18,933,956 BTC coins. 

Bitcoin: Analysis

As mentioned yesterday, Bitcoin has formed a triangle pattern inside a parallel falling channel of lower lows and lower highs. Bitcoin is currently testing the base of the triangle with huge red candles. If Bitcoin couldn’t hold this support level, it can fall as low as $34,000, fib 1.618 – dwindling more than 15%. In order to overcome this bearish pattern, Bitcoin needs to break the previous high of $44,000, fib 0.786 – which now acts as a local resistance level.