Bitcoin, the world’s largest cryptocurrency, has been running a bull since the end of 2020, with BTC showing no signs of slowing down on charts. However, the crypt was subject to minor corrections along the way, particularly after setting all-time highs one after the other. In the present case, too, BTC seemed likely to see a short-term decline.
At the time of writing, Bitcoin was valued at $51,642, with a market capitalisation of $963 billion for cryptocurrencies. Over the past week, BTC has been trading within the confines of an ascending channel, with a breakout obviously in the works as well.
Bitcoin 4-hour chart
Source: BTC/USD, TradingView
Bitcoin’s price has moved within the boundaries of the ascending channel formation over the past week. According to its price behaviour mapped out in the 4-hour chart, it is likely that the crypt will soon break out of the same. In most cases, the break-up of this formation also leads to a mild price correction. In such a situation, BTC is likely to shift to its support level around the $50k price point. In a more unlikely case, however, Bitcoin could fall to $47,306 all the way down to its second support stage.
Resistance to its current ATH has remained undeterred over the past 24 hours, and if the coin fails to crack it in the coming hours, further market discovery for BTC could be temporarily halted.
Rationale
Bitcoin market forecasts backed the prospect of a small fall in price in the short term. The RSI was coming out of the over-purchased zone and was moving closer to the neutral zone – a small fall in the buyer’s feeling.
The MACD indicator may soon experience a bearish crossover as the signal line continued to rise and the head closer to the dropping MACD line.
Conclusion
Given the clear bullish momentum on the Bitcoin market, one would expect the bull run to restart in the long run. However, the cryptocurrency has been subject to price corrections and it looks like BTC will have to last another one in the next 24 hours. This could drive Bitcoin’s price to $50,000, with the crypt likely to drop down to support about $47,000 as well.
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