Bitcoin price has long been consolidating below the 10,000. In fact, right now sits below the round number still, confirming the difficulty it has to break higher.
However, recent developments on the lower timeframes reveal a triangle that just broke higher. With a tight stop-loss and trading at the market, the measured move offers a good risk-reward ratio.
Bitcoin as a Safe-Haven
Bitcoin is viewed as the reason why other cryptocurrencies exist. If Bitcoin price does not move, the overall cryptocurrency market is dead.
For this reason, a consolidation like the one seen in the last couple of months or so tests traders to the maximum. Investors want to hold on to their Bitcoins and bite their nails when seeing the Tesla share price or Amazon share price acting like the new Bitcoin. However, hodlers believe the price can only move higher, and nothing else matters.
Speculators or traders do not care about the Bitcoin price direction. Mainly scalpers, such traders want to see the price moving. That is all.
But Bitcoin holding close to the 10,000 in uncertain times created by the coronavirus pandemic also tells us that it can act as a safe-haven. After all, this is what most investors expect from it.
Bitcoin Price Technical Analysis
BTCUSD technical picture shows a potential irregular triangle that just broke higher. Such a triangle has the b-wave the longest, and its measured move equals 75% of the b-wave’s length, projected from the end of the e-wave.
An irregular triangle that consolidates with the last segment into the apex ends when the price breaks the b-d trendline. This happened two days ago already, and the apex should act as support on any future pullback.
However, the triangle’s apex (i.e., the a-c and b-d lines’ intersection point) should not be reached until the price goes to the measured move. This leaves us with a price target of 11,000 and an invalidation for the triangle setup of $8900. Not bad for a risk-reward ratio, considering the current price of $9500.