Bitcoin Trades Sideways, Heading Toward Apex Of This Pattern: The Bull, Bear Case For The Crypto

Zinger Key Points
  • Bitcoin is trading in a possible descending triangle pattern, set to meet the apex on Aug. 4.
  • If the crypto enters a downtrend, it's likely to find support at the 200-day SMA.

Bitcoin BTC/USD was consolidating sideways during Monday’s 24-hour trading session, in tandem with the S&P 500, which was trading flat ahead of another week of big-tech earnings and jobs data.

Advanced Micro Devices, Apple and Amazon will print quarterly earnings on Tuesday and Thursday, the results of which could set a big move in the stock market motion.

If the three stocks suffer bearish reactions to their earnings results, the S&P 500 could enter into at least a short-term downtrend.

Economic data set to print this week could also pull the stock market and crypto sectors into either an uptrend or a downtrend. If the S&P 500 reacts bearishly to the data, Bitcoin could break bullishly, with investors fearing more interest rate hikes and a possible recession.

If that happens, volatility in the stock market could start to increase. Traders wishing to play the potential volatility in the stock market can use MIAX’s SPIKES Volatility products. The products, which are traded on SPIKES Volatility Index SPIKE, track expected volatility in the SPY over the next 30 days.

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The Bitcoin Chart: Bitcoin is trading in a descending triangle and is set to meet the apex of the pattern on Aug. 4. If the pattern is recognized, the crypto may break up or down from the triangle on higher-than-average volume, which will allow traders to gauge the short-term direction.

  • During Monday’s session, Bitcoin attempted to regain the 50-day simple moving average (SMA) as support but wicked from the area, causing the crypto to form a shooting star candlestick. If the candlestick is recognized, Bitcoin could retrace further on Tuesday.
  • If Bitcoin breaks bearishly from the triangle and enters a downtrend, the crypto is likely to find support at the 200-day SMA. The 200-day SMA is currently trending at about the $26,700 mark.
  • Bitcoin has resistance above at $30,050 and at $31,418 and support below at $29,046 and at $28,690.

Read More: Bullish On The Semiconductor Sector Ahead Of Advanced Micro Devices Earnings? This ETF Offers 3X Leverage- 

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