Will Bitcoin gain 10% next week?
Bitcoin has shown a steady trend of consolidation and expansion since it formed a bottom around USD 74,500 in early April. Over the past four weeks, a pattern has emerged where each time Bitcoin reaches a key level, it moves sideways before breaking to a higher range. This pattern has repeated twice, with a third consolidation currently underway.
Each phase has followed a similar setup, forming higher highs and higher lows. The lower range is usually tested at least once before Bitcoin reaches new highs. The relative strength index (RSI) has complemented this price action, reaching overbought levels during new highs and falling to around 50 during the sideways movement.
Currently, Bitcoin is consolidating between a upper range of USD 105,700 and a lower range of USD 100,678. If the pattern holds, Bitcoin could retest the USD 100,000-USD 102,000 level before potentially breaking above USD 110,000. However, a bearish invalidation could occur if prices fall below USD 102,000 and do not quickly recover.
