As a seasoned researcher with years of market analysis under my belt, I have witnessed numerous market fluctuations and learned to read between the lines of chart patterns. The recent dip in Bitcoin (BTC) price might seem disheartening, but it’s important to remember that every downturn is just another step towards an upswing.
On Monday, Bitcoin (BTC) departed from its upward trending channel, reflecting its recent correction. Yet, it’s possible that this decline has ended, as Bitcoin’s price seems to be climbing once more. The next potential high point for BTC is approximately $70,000.
Over the past few days, the value of Bitcoin compared to the U.S. Dollar appears to have dropped, but it seems that Bitcoin’s continuous upward trend is starting to resume once more.
$BTC falls out of its ascending channel
The chart displayed briefly suggests that the Bitcoin (BTC) price dipped below its rising trendline, which previously functioned as a source of support at $64,400, but now serves as a barrier or resistance.
During the phase when the leading cryptocurrency was showing a downward trend, the short-term Stochastic RSIs had the chance to rebound. These indicators were prepared to rise once more, suggesting that the price movement might head upward again.
Consequently, it’s plausible that Bitcoin could rebound past its resistance level and regain entry into the uptrend channel. If this happens, the price might climb up towards the peak of the channel, potentially reaching the significant previous swing high at around $70,000.
Conversely, if the price doesn’t manage to reach a new high, it might indicate more fluctuation or volatility within the bull flag. In this case, the price could potentially drop further.
Resistance from last bull market must be overcome
On a weekly scale, Bitcoin’s price appears to be fighting against a resistance zone that spans from approximately $63,400 to $64,400. This is significant because it marks where the previous two-week bull market candles peaked. Therefore, for Bitcoin to continue its upward trend, it’s crucial that it successfully closes above this resistance level by the end of the week.
2-week hidden bullish divergence
On this particular timeframe, it’s worth mentioning a bullish divergence that’s occurring. While the Stochastic RSI has been moving downwards, the price movement itself has risen. If this pattern continues, it could serve as an additional factor supporting Bitcoin’s potential climb and surpassing the upper limit of its bull flag formation.
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2024-10-01 12:07