Bitcoin Price Forecast: BTC pursues $33,600 before retracing further
|- Bitcoin price has been locked in a descending triangle pattern, indicating a bearish outlook.
- The leading cryptocurrency could see a potential trend reversal toward $33,600.
- A technical indicator flashed a buy signal, adding credence to the recovery thesis.
Bitcoin price could see its downtrend retreat as it appears to reverse a period of underperformance. However, a potential rally would not be long-lived, as the prevailing chart pattern could ruin the bullish outlook.
Bitcoin price expects a short-term reversal
Bitcoin price has been forming lower highs and lower lows since June 29. On the daily chart, BTC appears to be trading within a descending triangle pattern despite a bull trap that emerged on June 14, which quickly retreated by June 18.
Despite the current bearish chart pattern, Bitcoin price could be expecting a short-term reversal. The Momentum Reversal Indicator (MRI) has flashed a buy signal on July 16 while recording a new monthly low at $31,000.
Bitcoin price would need to secure a daily close above the 27.2% Fibonacci extension level at $32,191 for the bullish forecast to materialize. Should this level be achieved, BTC could tag the 38.2% Fibonacci extension level, coinciding with the 20-day Simple Moving Average (SMA) at $33,574.
BTC/USDT daily chart
Further buying pressure could see Bitcoin price slice above the hypotenuse of the descending triangle pattern and target the 50% Fibonacci extension level, corresponding to the 50-day SMA at $35,000.
Investors should note that the chart pattern has a primarily bearish bias. Therefore, speculators should note that Bitcoin price could look to retest critical levels of support before a bullish breakout occurs.
Outstanding support could be found at $30,159, the lower boundary of the descending triangle pattern. Further bearish momentum could push Bitcoin price down to retest the June low at $28,782.
Only if Bitcoin price were to lose the support level mentioned above would put the bearish target of the chart pattern on the radar, a 28% decline which sits at $21,542.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.