Bitcoin price analysis reveals that Bitcoin is trading in an ascending triangle pattern, indicating a potential bullish move in the near future. This pattern is formed when the price of an asset creates higher lows and approaches a resistance level that remains flat or slightly sloping downwards.
Bitcoin‘s recent price movement has been characterized by higher highs and higher lows, indicating that buyers are gaining strength in the market. This is further supported by the fact that Bitcoin has successfully held above the key support level of $37,000 over the past few days despite facing some selling pressure.
Market experts on Twitter, such as Mags (@thescalpingpro), suggest that the BTC price topped out locally and is now consolidating for a few months before re-testing the upwards-sloping trendline support. This consolidation period could potentially lead to a breakout towards higher levels, with altcoins also expected to outperform during this time.
Market analyst CryptoBusy also suggested that BTC is preparing for a move, and if it follows the ascending triangle pattern, it could be bullish. With Bitcoin currently trading at $37,731.44, down 1.37% in the last 24 hours, a trend reversal could be on the horizon.
The technical analysis on the 4-hour and hourly timeframes shows a low volatility environment for Bitcoin, indicating a potential breakout in the near future. The recent consolidation phase could be seen as a period of accumulation and price discovery before the next bullish move.
The technical indicators signal neutral to bearish sentiment, with the Relative Strength Index (RSI) hovering around 50 and the Moving Average Convergence Divergence (MACD) showing a slight bearish crossover.
The price of BTC is trading above all the moving averages, with the key support present at the Exponential Moving Average of 20 ($36,900). In case of a bearish continuation, the next support levels are at the EMA 50 ($34,685) and SMA 50 ($34,332) on the 4-hour chart.
The potential bullish move could face resistance at $38,000, followed by the key psychological level of $40,000. A break above these levels could pave the way for a retest of recent highs above $42,000.
Bitcoin’s short-term price action will largely depend on its ability to hold above $37,000 and break out from the ascending triangle pattern. Conversely, a break below $37,000 could lead to a retest of the key support level at $35,000 and potentially lower levels.
