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For the past few weeks now, the Bitcoin price has been ranging between the $11,000 resistance region and the $10,000 key support level.
This sideways movement in price has slowly formed a converging triangle pattern that is beginning to give out strong hints and indications that it might be ready to finally breakout.
However, the direction of this breakout is still uncertain as the Bitcoin price can either decide to breakout to the upside or to the downside.
In this Bitcoin analysis, we will be talking about how best to take advantage of this coming move as well as the important levels to place your entries and exits for both the bullish breakout and a bearish crash scenario.
Catching The Coming Price Breakout
For a bullish price breakout, the most important level to watch for price to penetrate and close above is the $10,790 key resistance level.
This price region as served as a strong support and resistance level in the past and will need to be broken before Bitcoin can begin pushing higher.
Once the Bitcoin price breaks through this $10,790 region, we can expect to see more volatility and volume come into the market, pushing the price as high as the $12,000 price region.
For the bearish price scenario, the most important support to watch out for to confirm a bearish move in the Bitcoin price is the $10,220 price level.
This price region has been a very strong support region holding the Bitcoin price up these past few days. A break and close below this level could see more weakness coming into Bitcoin and a subsequent decline in price in the coming days.
The price target for this bearish crash is the $9,254 region. However, there is a high probability that if this price scenario plays out, we might see a deeper retracement in the Bitcoin price (caused by the current volatility in the stock market) before the Bitcoin bulls step back in.
Waiting For Confirmation
It is important you wait for the Bitcoin price to either break through the $10,790 resistance or the $10,220 support region before placing any trades. This can help you avoid getting stuck in a sideways ranging market.
To gain more information on how to partake in this coming Bitcoin Bull run and trade this cryptocurrency, you can read my How To Trade Bitcoin Guide. You can also check my top list of Best Bitcoin Exchanges To Trade With.
