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The Bitcoin market has been volatile, with prices unable to close decisively above $50,000. For the past week and a half, prices have been bouncing between the $46K-$50K range, with no discernible trend emerging. While large investors were buying, retail investors were selling, putting the king coin under a lot of pressure.
Moreover, despite the fact that the aforementioned range has traditionally been difficult for BTC, prices were expected to rise as a bullish pattern developed on the charts. At the time of writing, BTC was trading at $49,896, up 0.4 percent in the previous 24 hours.
Bitcoin 4-hour Chart
Bitcoin’s movement, since late-July seemed to be a mirror image of its run in late-January. On 27 January, BTC’s prices kicked off a strong rally from the $30,000 mark. From there, it found a resting ground at $37,000 and pushed towards $48,000.
Prices slipped into a bit of a pause as buying pressure eased, and it took almost a week to rebound beyond $50,000. Switching to BTC’s most recent price movement, it revealed a similar trend with an ascending triangle in formation. Higher lows were shown along a bottom trendline, while $50K was plotted along an upper trendline.
However, a more exact closing above $51,050 was required to increase the likelihood of a breakout. Some critical locations were located at the Fibonacci levels of 123.6 percent, 138.2 percent, and 161.8 percent. The $46,000 level could come under attack again if there is a big wave of selling pressure, but a collapse is improbable.
The RSI has been trading inside the limits of a horizontal channel since early August. The fact that BTC has repeatedly tested the overbought zone demonstrates the bullish market’s strength. A break above the top trendline would now signal the beginning of a price movement.
The Awesome Oscillator has also recently advanced. Two higher peaks indicated that buyers were gaining headway. MACD, on the other hand, was approaching a bearish crossing and indicating a short-term downturn.
The Fibonacci tool was used to indicate prospective areas of interest as BTC prepared for an ascending triangle breakout. However, the signs had yet to transcend critical levels, implying that a breakthrough would be delayed rather than an immediate increase.