The upward momentum in Bitcoin’s price encountered resistance upon reaching the significant $37K mark.
$BTC
However, the market has entered into a consolidation phase, with the price oscillating within the range defined by $37 and $35K. A breakout from this critical range will determine the subsequent trajectory for Bitcoin.🔥🔥🔥🔥🔥🔥🔥🔥🔥🔥
The Daily Chart🔥🔥🔥🔥🔥🔥🔥
On the daily chart, the substantial uptrend in Bitcoin lost steam after breaking out from the $35K resistance zone and the middle trendline of the extended ascending channel. This transition led to a consolidation stage, presenting a crucial range between the resistance of $37K and the critical $35K support. Hence, Bitcoin’s future prospects will be determined by the price breaking out of this decisive range.
Despite several bullish signals indicating increased demand, the scenario of a short-term consolidation correction with minor retracements appears more plausible. Initial support for buyers is anticipated at the middle boundary of the ascending channel and the $35K support zone.
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The 4-Hour Chart🔥🔥🔥🔥🔥🔥🔥
Examining the 4-hour chart, Bitcoin’s price movement decelerated around the crucial $35K resistance and eventually entered a consolidation phase.🔥🔥🔥🔥🔥
Although the price managed to surpass this resistance, reaching $37K, it also formed an ascending wedge pattern. Ultimately, attempts to breach this level faced heightened supply, resulting in a notable rejection.
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The presence of an ascending wedge pattern, signaling a potential price reversal, coupled with an expanded bearish divergence between the price and the RSI indicator, suggests a need for a short-term retracement. In the event that sellers take control, a long squeeze event could unfold, pushing the price below the established ascending wedge pattern. Key support levels in such a scenario include the 0.5 Fibonacci retracement level at $32,300.🔥🔥🔥
