- Bitcoin tightens within a triangle near $103K, showing bullish structure while altcoin divergence highlights BTC dominance and strength.
- BTC forms consistent higher lows as it trades near a key compression point, with volatility expected as momentum builds toward $107K.
- Market sentiment remains cautious despite bullish price action, as increasing trader transparency signals possible overconfidence in direction.
As per Crypto analyst Astronomer, Bitcoin consolidates within a symmetrical triangle pattern, indicating a crucial period of price compression. As of writing, BTC trades at $102,979.20 on Binance’s perpetual contract. It recorded a session high of $103,458.60 and a low of $102,851.50. This comes after a strong rally on May 7 that pushed prices from around $96,000 to nearly $103,000. The rapid surge created a new trading range, now forming the foundation for current consolidation.
The recent pattern shows a clear tightening of price movement. The triangle formation is bounded by descending highs from $105,000 and ascending lows from $101,000. Hence, Bitcoin now trades near the apex of this triangle. Such compression typically signals a sharp move ahead. However, current market sentiment leans cautious despite the bullish setup. Many traders on social platforms display unusual transparency, hinting at potential overconfidence. Consequently, some volatility may persist before a breakout.
Source: Astronomer
Support Zones Hold as Trend Remains Intact
BTC’s broader structure remains bullish as it forms consistent higher lows. Moreover, the altcoin market shows a different rhythm, printing local lower lows on $TOTAL3. This divergence strengthens Bitcoin’s position as the leading asset. Additionally, key support zones continue to hold. The $95,600 level marks the bottom of the major consolidation range. The $99,000 and $103,000 zones serve as additional horizontal levels with historical relevance.
Besides, purple bands around $97,000 and $106,000 reinforce these key price levels. These zones once acted as strong resistance and now function as potential support. The price is consolidating between these levels, confirming their relevance.
Volatility Expected as Compression Nears End
The projected line suggests a short-term dip to $101,000 before a strong rally toward $107,100. This aligns with technical expectations from a symmetrical triangle breakout. However, caution prevails due to inconsistent trader behavior and visible market indecision. Additionally, increasing transparency from traders usually not vocal hints at possible traps ahead.
Hence, BTC could continue to chop sideways before a decisive breakout. Traders should stay patient and avoid overtrading. Momentum remains bullish, but timing remains key. Overall, Bitcoin’s triangle formation may soon give way to increased volatility and potential upside, making the coming days critical for market direction.
