The Bitcoin price is consolidating rather than falling back to key support. If this price action continues for the current down leg, a big push up to $100,000 could be the next move.
The $BTC price reached the top of its trajectory for the last upside push late on Monday. Since then, the price looks to have gone into a consolidation pattern that is starting to resemble a bull flag. There are only two touches to top and bottom of the flag so far, so this pattern is perhaps not far enough advanced in its formation to rely on just yet. Nevertheless, it does look promising up to now.
Depending on how the pattern forms, the measured move from this potential bull flag could take the price up to around $98,000. If and when the price comes further down, a retest of the $90,400 horizontal support could coincide with a retest of the bottom of the flag, leading to a bounce.
At the bottom of the chart, the 4-hour Stochastic RSI indicators are coming down nicely, followed by the 8-hour. If the 12-hour indicators can also drop a decent amount, a reasonable reset of these short-term indicators would have been accomplished, resulting in a stronger price momentum signal for the next upside leg.
The daily time frame reveals that there are some important patterns and indicators in play. Starting from the bearish perspective, the bear flag is still forming. Until the price can confirm above this pattern, nullifying it, this is still a source of concern for the bulls.
The daily Stochastic RSI indicators have only just started to come down from the top, so unless they start bouncing there, this particular momentum signal is likely to remain on pause.
From the bullish point of view, the small bull flag has already been mentioned, although the measured move out of it would see the $BTC price staying within the confines of the much larger bear flag.
The main bullish pattern here is the ascending triangle (in green). Tuesday’s surge to almost exactly test its upper trendline, probably served to confirm the pattern. The price could either break out on the next upside leg, or there could be a bit more chopping around to come before a breakout further along the triangle. The green dotted arrow illustrates the target of the breakout, which is at over $108,000.
The Relative Strength Index, at the bottom of the chart, shows that the indicator line is bouncing from an ascending trendline. It will need to stay above this trendline if the bullish price action is to continue.
The weekly time frame view of the $BTC price shows that the bulls still have a lot to do. We are still less than halfway through the week, and with the next upside push to come, perhaps beginning on Thursday or Friday, a breakout could be witnessed before the weekly close on Sunday.
What is absolutely crucial for the bulls is that the Stochastic RSI indicators do not come back down again. If both indicator lines are above the 20.00 level going into Monday, some big upside price momentum could be signalled.
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