Bitcoin has been trading inside an equilibrium pattern for a few weeks now. The bears were able to break below the last higher low, however, there was no continuation move and the bulls are trading above the low again.
This shows a huge lack of strength for the bears as the break of the pattern was quite clear. Bitcoin has now basically formed a triple bottom, however, bulls are also struggling to see any momentum.
It seems that neither the bulls or bears want to actually commit although long positions remain at all-time highs on Bitfinex while shorts continue to be on the low side.
Is Bitcoin Going to Continue Trading Sideways?
The equilibrium pattern could continue for a few more weeks if the volatility of Bitcoin remains this low. The trading volume is still decreasing, even yesterday after the bear break.
If the bulls can manage to see a small rally up to $7309 and break above the high, they could set the pace for the next big breakout.
The weekly chart might also be getting ready for an equilibrium pattern, although this would take far longer but it’s still a possibility considering the low volatility and trading volume.
The monthly chart is still in favor of the bulls but they need to set a higher low in order to feel comfortable.