Bitcoin has formed lower highs and higher lows to consolidate inside a symmetrical triangle pattern on its 1-hour chart. Price is approaching the peak of its formation so a breakout could take place sooner or later.

The 100 SMA is below the longer-term 200 SMA on this 1-hour chart to suggest that the path of least resistance is to the downside. In other words, support is more likely to break than to hold. The 100 SMA is also in line with the top of the triangle to add to its strength as a ceiling.

RSI appears to be on the move down to show that sellers have the upper hand. In that case, price could fall below the triangle and sell off by the same height as the chart pattern, which spans $6,000 to $6,400.

Stochastic is also pointing down to confirm that bears are in control. Both oscillators have room to head lower before hitting oversold territory, which means that the selloff could go on for a bit longer.

Cryptocurrencies have had a rough week so far but bitcoin appears to be supported thanks to its rising market dominance. This has been typical behavior during bear markets as bitcoin tends to function as a safe-haven of sorts among altcoins.

Dominance is closing in on 60% which is roughly where bitcoin’s market share was before the sharp rally that ensued in mid-December last year. Many see this as a sign that a turnaround is due, especially if the cheaper levels draw more buying activity.

Then again, the recent consolidation seems like a bearish flag pattern in longer-term charts. If so, this might be a continuation signal and confirmation could lead to a drop that’s the same height as the mast, which spans $6,400 to $7,400 in this case.