Bitcoin narrows range, prepares for decisive moment of new trend

 Bitcoin's two-month sideways process has created four meaningful price zones. Up to now, the range has been narrow, this move is usually the preparation for the moment to decide the new trend of the market.

Today, Bitcoin price remains volatile inside an isosceles triangle pattern that has formed this week.

This model represents the duality of both buyers and sellers. The narrower the range, the more likely it is to have sudden beards, which traders often call the Simpson price pattern. This volatility makes leveraged traders vulnerable to liquidation.

The common prediction scenario of the movement inside an isosceles triangle is that the price will maintain the movement so that the price will touch the trendline (the two sides of the triangle) at least three times. Therefore, we can expect the price to bounce back to the $40,000 resistance area soon after hitting $38,000 today. After that, BTC price can reach $41,000 corresponding to the 3rd touch of the upper diagonal trendline.

However, the worst case scenario is that the price cannot hold the support near the current (lower trendline) and may move towards the old bottom at $34,000 (red line in the picture).

Thus, according to this model, the expectation of a short rally can give a better R/R ratio in the short trade. Recently, some whale wallets have been acting very closely to the price line.

Price movements usually go through three iterative steps: Trend spike (up or down) -> Correction (down or up) -> Sideway to the balance zone. It can be seen through the following Bitcoin price history:

In the past, an isosceles triangle pattern appeared, followed by a new trend. (decrease like 2018, or increase like 2019, 2020). It can be seen that the Bitcoin price in the past few days has entered the 3rd phase, which is moving towards the equilibrium price area which is also the area for the highest volume and most active transactions.

And what happens in the small time frame (4h) can help us predict early what might happen in the larger time frame (3D).

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