Bitcoin price has been steadily ranging this past week. However, looking at the Daily chart, BTC is on an uptrend. Can it sustain this trend or will there be a pullback this coming week? Let’s find out
Previous Bitcoin Analysis
Last week Bitcoin took a sharp nosedive from the $31,000 mark after the United States dumped 8200 BTC on the market. Nevertheless, the dump was insignificant in the greater scheme of things since Bitcoin was still in an uptrend. While the price of Bitcoin has remained in consolidation for the most part of the week, it still has been trading above its 50-day moving average.
Additionally, the recent dip to $29,000 was quickly bought up by investors, indicating strong support at lower levels.
Bitcoin Price Next Week
A gigantic ascending triangle has been forming over the past six months and is almost nearing its end. Ascending triangles can indicate a potential breakout to the upside. They are formed by a horizontal resistance level and a rising trendline. As the price approaches the resistance level, it may bounce off it multiple times, creating a series of higher lows. This results in a triangle shape that points upwards, hence the name ascending triangle.
Traders look for a breakout above the resistance level as an indication of a potential bullish move. The breakout should be accompanied by high trading volume to confirm the validity of the pattern. The target price for the breakout is usually calculated by measuring the distance between the highest and lowest points of the triangle and adding it to the breakout point.
This puts the price of Bitcoin at around $46,000 to $48,000 in four to five months.
Final Thoughts
Overall, while there are some positive signs for a potential bullish breakout, it is important to keep in mind that the cryptocurrency market is highly volatile and unpredictable. Therefore, it is crucial to closely monitor market trends and news developments to make informed decisions.
DISCLAIMER: The work included in this article is based on current events, technical charts, company news releases, and the author’s opinions. It may contain errors, and you shouldn’t make investment decisions based solely on what you read here.