A new Bitcoin trend bias has emerged to make a divide within the bullpen section of the market. The latest rebound has presented an opportunity for a retracement above $30K. The technical indicator used for decades confirms the price recovery predictions. Broadening Formation is an index that is represented on the charts as divergent lines.
The Emergence of Broadening Formation
As defined by Investopedia, Broadening Formation is used to show the disagreement brewing up for a potential bias for a particular asset class. Due to this bias, upper and lower interim peaks represent the difference of opinion among investors. For the time being, BTC is moving within a contained structure that warrants a lack of volatility. This is also a key feature for the broadening formation index.
As noted by crypto analytics service TradingView, the most interim or transitory resistance level for Bitcoin falls at $33,918.82. If Bitcoin can overcome the closest resistant dash-lined at $35,000, it could move on to the next resistance stage. Meanwhile, the extended move unveils the opportunity to breach $40K that is more favored by investors at large.
However, if Bitcoin is plunged into a pullback, it can enter into a steep falling channel formation. This could mean that the flagship cryptocurrency has to walk back to the $28,500 level at the so-called Broadening Wedge support. It should be noted that the lower volatility levels seem healthy enough to resist the intra-change movement.
At present, bulls are trying to present the $30K as the ultimate support level for Bitcoin. Meanwhile, bears claim to assume control of the market within the $34K to $35K range. This conflicting setup has thrust Bitcoin into the constrained trading range. At this stage, it is not possible to formulate an interim price movement prediction with accuracy.
Under these circumstances, the market is driven by the fundamentals. The money printing and devaluation of fiat currencies are working as a buffer for the bulls. On the other hand, there is also increasing regulatory pressure in many countries over crypto mining and trading. India is prosecuting WazirX, China has imposed a blanket ban, and the biggest exchange in the world Binance is facing legal repercussions in places like the UK, Canada, Japan, Italy, Poland, Cayman Island, and Mexico others.