The Bitcoin price is into the tenth day of boring sideways consolidation. How much longer can this go on for? Whether it’s to the up or the downside, once this period of inactivity breaks it could do so in spectacular fashion. Watch out for the coming rally/collapse. It’s not the time for taking your eye off the ball.
Bitcoin holding firm while other asset classes fall
Source: TradingView
Into the teeth of obdurately rising bond yields, the $BTC price has performed exceptionally well, while other asset classes such as stocks and precious metals have been battered. This is not the usual state of affairs we have been used to, as until relatively recently, the Bitcoin price would have slavishly followed the US stock market, going down hard if stocks went down. Since rising out of its bear market Bitcoin has been a different beast, holding firm while the likes of gold have continued a slow but persistent decline.
The 4-hour time frame chart above shows the sideways choppiness of the $BTC price. Within this new parallel channel the price is generally respecting the 0.25% and the 0.5% demarcation lines (dotted lines). If the price can get above 0.25% it is likely to continue up to the 0.50% line. From there, a big gap up to the top of the channel awaits. We will see if the $BTC price can get there and at least have the chance of a breakout.
Bounce or collapse?
Source: TradingView
While it is certainly not confirmed, a downsloping trendline has been drawn in, which would make the current pattern a descending triangle. These are generally bearish patterns, but as can be seen, the $BTC price is currently trying to break beyond this trendline. If the pattern is kosha, then perhaps we might see some volume boosting the price up if it breaks out.
At the bottom of the chart, the Stochastic RSI has its indicator lines coming down at a faster rate. They might be expected to touch bottom by the end of the weekend.
Below this is the Relative Strength Index. The indicator line here is following along the top of the descending trendline nicely. If it doesn’t fall through, a decent bounce would be reflected in the price action in the chart above heading for the top of the channel. If it does fall through, expect a corresponding collapse in the price action.
Bull flag breakout move still to come?
Source: TradingView
The weekly time frame reveals that after testing the $83K support level the $BTC price is probably ready to go higher. Why higher? Because the price has only just broken out of the bull flag and therefore it would be expected to rise quite a bit higher in order to get at least somewhere near its measured move to the upside ($94K).
The Stochastic RSI indicator lines have crossed bullish, with the blue fast line back on top of the red slow line. In addition, the MACD for the weekly is recording a steady upward trend. The histogram gets a pale green bar now and then, but the blue MACD line is well above the red signal line, and so this trend looks set to continue.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
Source: Crypto Daily