Bitcoin (BTC) at $29,000, how long will the consolidation continue?

Bitcoin has been consolidating for the past 24 hours, however, altcoins are down on their charts. During the last week, the king coin continued to record sideways price movements on the charts. Since November 2021, the price of Bitcoin has been steadily moving lower.

On the longer time frame, Bitcoin has continued to show signs of an upcoming downtrend. On a comparatively shorter time frame, the real coin could be hinting at a price reversal.

During the last 24 hours, BTC did not make a profit. In the last week, it lost around 2% as the coin was mostly consolidating. BTC is currently sitting between $28,000 and $29,000 as those two levels have been acting as the crucial demand zone for the coin.

Buyers appear to have clearly given up on the initiative to lead the price action and with continued strength from sellers, BTC could be eyeing the $20,000 price level.

Bitcoin Price Analysis: One-Day Chart

Bitcoin was priced at $29,000 on the one-day chart | Source: BTCUSD on TradingView

BTC was priced at $29,100 at the time of writing. The coin had formed a descending channel since November 2021 highlighting an extended bearish phase. The coin has touched $69,000 in the month of November, which is considered to be the all-time high for the coin.

Currently, the price of BTC is trading sideways between $29,000 and $28,000. A drop below which can push the price of the coin up to $19,000. The coin’s overall resistance stood at $30,000 and for the bear thesis to be invalidated, BTC needs to trade above $31,000.

It will take a broader market force and buyers for BTC to move north on its chart.

Technical analysis

Bitcoin recorded an increase in buying strength on the four-hour chart | Source: BTCUSD on TradingView

The short-term time frame for Bitcoin looked bullish and pointed to a price reversal on the charts. The coin formed a falling wedge pattern on the chart (yellow).

A falling wedge pattern is related to a change in trend and that can be considered bullish for BTC. Typically, after a period of consolidation, explosive price actions are often due.

In the relative strength index, the indicator rose and reached the 50 mark, which meant that buyers were returning to the market. This meant positivity in the market.

BTC price was still below the 20-SMA, which meant sellers were still driving price momentum. An increase in buying strength can push BTC above the 20-SMA line.

Related Reading | Bearish Indicator: Is Bitcoin Heading For Its Ninth Weekly Red Close?

Bitcoin showed a buy signal on the four-hour chart | Source: BTCUSD on TradingView

The technical outlook on the four hour chart points towards a price reversal. The Awesome Oscillator dictates the price momentum in the market. AO showed green histograms that are also linked with a buy signal that reaffirms the readings on the RSI.

Bollinger Bands show price volatility in the market, and if the bands are narrow and restricted, a period of price volatility can be expected. This could mean that in the coming trading sessions, BTC could try to break above its immediate resistance level as long as the market is broader and buyers extend support.

Related Reading | Ethereum slips, what are the next vital trading levels for the coin?

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