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Bitcoin is trading within the support area of the short-term bullish pattern. This support has caused BTC to rebound many times, so a bullish breakout appears to be the most likely scenario.
Since the beginning of December, Bitcoin (BTC) has been trading in the range of $ 46,300 – $ 51,750. At the same time, since December 30, trading has been carried out in the lower part of this range.
The price dipped slightly under the range support, but did not absorb the December 17 lows (red line). As long as BTC is trading above this line, the likelihood of a bullish rebound remains.
Source: TradingView
Short-term pattern BTC
Analysis of shorter timeframes shows that Bitcoin has been trading within a falling wedge since December 28. Typically, a wedge is a bullish pattern, so a bullish breakout from that pattern appears to be the most likely scenario.
In addition, the MACD and RSI indicators give bullish divergence signals. This means that the decline in price does not receive support in the form of a similar decline in momentum in the pair.
The nearest resistance is located in the area of $ 48,000. It is represented by the Fibo level of 0.382 correction.
A source: TradingView
Long-term dynamics
A similar picture is displayed on the daily chart for BTC. Here the price made a bullish breakout of the downtrend resistance line and subsequently turned it into support.
Although Bitcoin has not yet started its active rally phase, the price is showing clear bullish signs.
As with the 6-hour timeframe, the MACD and RSI indicators give strong bullish divergence signals (green lines).
If the growth develops, the nearest resistance levels will meet the price in the region of $ 52,300 and $ 58,700. The first level coincides with the resistance of the short-term range, and only its breakdown and exit from the range will allow the BTC rate to reach the second level.
Source: TradingView
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