The flagship cryptocurrency, whose market cap has recently risen above Facebook and Tesla, fell below the record level of near $ 42,000. However, its decline led to further liquidity shortages against the limited supply cap of 21 million tokens, encouraging wealthy traders and institutions to buy at cheaper prices.
As a result, Bitcoin price mostly consolidates sideways, forming a structure that looks like a Symmetric Triangle.
In retrospect, the pattern evolves as the price creates higher lows and lower highs. Meanwhile, the trade volume is falling. Ultimately, the price bursts up or down in the direction of the previous trend.
Bitcoin’s previous trend was on the rise. Therefore, the probability of the cryptocurrency to show another bullish trend is higher in the breakout move from the Triangle pattern. This development could increase the Bitcoin price to over $ 50,000.
A move above the triangle, coupled with an increase in volumes, is expected to push the Bitcoin price above $ 50,000.
Where’s the direction?
Basically, the price target appears to be attainable, at least according to many analysts who have determined market bias against in-chain indicators. For example, data analysts at Glassnode point out that Bitcoin will be on the rise for the cryptocurrency, highlighting the biggest liquidity exhaustion ever in recent weeks.
Luke Martin, an independent market analyst, said, “The [Glassnode] chart may be more important than the price chart: Bitcoin supply is pulling from exchanges at an all-time fastest pace. Historically, bullish cycles have ended after the change in liquid supply turned in a positive direction. “This conversion has not happened yet.”