Bitcoin remains trapped inside triangle pattern but not for long

Bitcoin continues to trade in a sideways triangle pattern. Price continues to respect the lower triangle boundary and this keeps hopes for bulls alive. Bulls will need to break above $38,600 in order for the short-term trend to gain some bullish momentum.

Red lines- triangle pattern

Bitcoin is in a neutral consolidating phase. The previous trend was bearish after the $65,000 top and decline towards $30,000. Our most probable scenario is for price to break the triangle to the downside. We do not rule out a break to the upside that is why traders need to be very cautious as long as price is trapped inside the boundaries of the triangle.