Bitcoin has formed a descending triangle pattern in the short term, which will complete on a breakdown below $6,757.26. The previous two attempts by the bears to break this support failed on April 01 and April 06.
The bearish pattern will be invalidated if prices break out of the triangle, which is close to the resistance line of the descending channel and just below the 20-day EMA. Once price breaks out of these resistances, the BTC/USD pair will turn positive and rally towards the 50-day SMA.
Traders can initiate long positions on a close above the 20-day EMA with a minimum target objective of $9,000. The initial stop loss can be kept at $6,700, which can be trailed later.
Our bullish outlook will be invalidated if the price breaks below the triangle, which can result in a slide to $5,435.66 levels.
