Bitcoin price analysis shows that the currency pair is moving sideways over the weekend. The crypto industry is also coming out of a long winter and has recovered slightly from the June lows. However, the current rally has yet to fully transform into a long-term uptrend. The Bitcoin/USD pair is up about 35% from its mid-June low.
The major digital currency is showing signs of another bearish flag on the hourly charts, but the pair still remains at the $23,800 level. The consolidation will certainly help the bulls as they enter the new week with more volume and momentum. The lower boundary of the triangle pattern supports the price up to $24,000. It remains to be seen whether solid support will act as a base for next week’s rally.
Bitcoin price action in the last 24 hours: Is the mini rally over or is another bullish phase in store?
The triangle pattern is now bullish with the rising price channel. The 50-day moving average at $21,300 is now comfortably below the price. A pullback is unlikely and the pair is consolidating at current levels. The next target is certainly the $27,000 price level where the bulls await the 100-day moving average with significant resistance as per Bitcoin price analysis.
Bitcoin price analysis shows that the price is heading towards the $27,000 level and another bullish move is certainly in the cards. The upper trend line will certainly provide major resistance as large-scale sell positions are liquidated. Bears will try to push prices below the 50-day moving average at $21,000. Such a move would result in a capitulation and an end to the current partial bullish rally.
BTC/USD 4-hour chart: Wedge pattern supports bullish move
Bitcoin price analysis on hourly charts shows a slowdown in price action. A wedge pattern could lead the price to move towards the $19,000 level. Any significant breakout of the wedge will lead to an upward rally. The uptrend is the peak swing of the current triangle pattern where the $27,500 resistance will be broken.
According to Bitcoin price analysis, a threat to the upside is the emerging double pattern on the hourly charts. To avoid such a mishap, the bulls need to ensure that the $23,900 level is maintained by the end of the day. The bearish divergence pattern in technical indicators, including RSI, also shows signs of slowing buying.
Bitcoin Price Analysis Conclusion: Next week is the key to the current bullish move
There is enough support for Bitcoin at the $20,000 level where bulls will increase buying action. If the price breaks down to the $21,000 level, different bearish indicators will come into play and sellers will quickly push the price towards the $20,000 support zone. In an oversold situation, the bears will push the BTC/USD pair to $18,000.
Profit booking may lead to further bearishness on the hourly charts. The current accumulation phase is not yet fully supported by large volumes and is therefore subject to correction. The market saw it surrender close to $20,000 and we may see the same again if prices drop sharply.
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