Trading without knowing what is going on in Bitcoin (BTC) in the new year was probably quite difficult. Making matters even more interesting as risk factors continued to rise, gold suddenly fell, Bitcoin had a huge boom and finally hit the $ 42,000 level last Friday.

 

But this week, Bitcoin (BTC) began a rapid retreat, and at one point, much of last week’s breakout was undone before finding some buyers support.

This bounce has now caused a squeeze and this price squeeze has formed a somewhat uniformly symmetrical triangle pattern so far. Such formations usually occur before a break, as the buying and selling pressure is equalized in a narrow range.

BTC / USD hourly price chart

Similar to this year’s boom, Bitcoin showed an overbought situation. Prices have aggressively bounced back from the $ 42,000 level, so naturally, there are many who look at it with a corrective perspective to create long positions or strategies in Bitcoin.

Before this bullish appearance occurs, the support zone can be retested and the symmetrical wedge formation after a sharp downward movement can be interpreted as a bearish pennant formation. Such backgrounds are usually followed by ongoing lower prices. This means focusing on support potential around the region, ranging from about 29,109 to 30k.

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Critical Bitcoin (BTC) levels

The Fibonacci retracement levels covering the current 2021 main move were particularly interesting as the 76.4% retracement is helping to dissolve support this week while the 50% indicator is currently helping to maintain resistance. The 61.8% improvement also led to some work that helped shape short-term support, and the 38.2% recovery marks this week’s current highest level, and this was set yesterday. These levels are shown in Green in the graph below.

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