Bitcoin suffered a volatile start to the new trading month. Bearish news surrounding the crypto exchange BitMEX and President Trump contracting Covid-19 weighed heavily on the cryptocurrency market.
Bitcoin price chart analysis shows that a breakout from $10,000 to $10,900 is required to activate a major directional.
Bitcoin medium-term price trend
Bitcoin suffered another technical setback last week, as recent negative news caused a sharp reversal from the $10,900 level.
Prior to the pullback, implied volatility towards Bitcoin has been at its lowest levels in more than 18 months.
Bitcoin price technical analysis shows that the cryptocurrency is working within a triangle pattern.
The daily time frame shows that the triangle is located between the $10,900 and $10,280 technical level.
A breakout from the triangle pattern is expected to prompt the next major directional move in the BTC/USD pair.
Traders should note that the $11,100, $11,400 and $11,700 levels are the main upside resistance zones, while the $10,000, $9,800, and $9,600 areas offer the foremost technical support.
Bitcoin short-term price trend
Bitcoin price technical analysis shows that short-term bulls remain in control while the price trades above $10,550.
The four-hour time frame highlights that a bearish head-and-shoulders pattern remains valid while the price trades beneath the $11,200 level.
According to the size of the head-and-shoulders pattern, the BTC/USD pair could fall towards the $9,000 area.
Watch out for the downside to accelerate if the price moves below neckline support, around the $9,900 level.
It is noteworthy that a break above $11,200 will likely start a major counter-rally.
Bitcoin technical summary
Bitcoin technical analysis highlights that a breakout from a large triangle pattern should prompt the next major directional move.