Table of Contents
On the 4-hour chart, Bitcoin (BTC) is in an Ascending Triangle, a bullish chart pattern that remains intact. The green upward line has already been successfully tested three times, acting as crucial support to prevent a downward breakout. Should this pattern be broken to the upside, the price target is $100,000 according to the technical projection. The price is currently in about the last third of the pattern, which makes a breakout in one direction likely in the near future.
BTC is currently moving around the 13 EMA, with the 50 EMA as crucial support. If this support is broken downwards and the white line also loses its hold, a correction could be initiated.
The firechart impressively visualizes the high density of buy orders above the current price, which could act as a potential catalyst for an upward breakout. The interaction of the bullish Ascending Triangle and the orders above the price increases the probability of an upward breakout. However, caution is still advised as abrupt changes in direction are possible at any time.
Bitcoin 4-hour chart with indicators and firechart (Source: TradingView)
Daily chart: Bitcoin consolidates after sharp rise
On the daily chart, BTC has seen an impressive 25 percent increase since November 6th before entering the consolidation phase within an Ascending Triangle. The price is now facing a potential next breakout.
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The RSI (Relative Strength Index) has corrected slightly downwards from its highs and remains in overbought territory at 73 points. The MACD (Moving Average Convergence Divergence) also suggests a possible slowdown, while the histogram signals a decline in positive momentum towards neutral levels. These developments could have a positive impact by stabilizing the price and creating room for a renewed upward move.
The Liquidation Levels image (at the top of the chart) shows that larger leveraged positions are above the current price. These could be picked up by another increase, which could help Bitcoin break the Ascending Triangle to the upside and successfully overcome the next resistance.
Bitcoin daily chart + liquidation levels (Source: TradingView)
Bastian Keller (Bitbull) has been operating independently in the Forex market since 2015 and has been a full-time trader in the crypto market since 2018. He actively shares this expertise on various social media platforms, especially on his YouTube channel “Bitbull Trading“, with more than 60,000 subscribers. Bitbull also has the platform TradeMania launched to make it easier for beginners to start crypto trading.
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How do technical indicators like RSI and MACD influence trading decisions during periods of market consolidation?
Thank you for your interest in an interview about the latest news in the cryptocurrency market. I’m pleased to introduce our first guest, Bitbull, a well-known figure in the crypto community with over 10 years of experience in Forex and 4 years exclusively trading cryptocurrencies. Additionally, he has a popular YouTube channel titled “Bitbull Trading” and co-founded TradeMania, a platform to help beginners navigate the world of crypto trading.
Bitbull, you’ve been closely analyzing Bitcoin’s technical indicators, and it seems that the Bitcoin price is currently consolidating after a significant rise. Can you walk us through the current market structure and what might be the likely outcomes?
Bitbull: Thank you for having me. On the 4-hour chart, Bitcoin is in an Ascending Triangle pattern, which is a bullish sign. This pattern has held up quite well, with the green line acting as crucial support multiple times, indicating a high probability of an upward breakout. At the moment, the price is hovering around the support line, making a breakout in either direction seem imminent. However, it’s important to note that sudden changes can occur, as seen in the past.
Our second guest is a seasoned investor and analyst in the crypto market, with extensive knowledge about technical analysis and market trends. Maria, can you please share your perspective on the present market structure and the potential price action in light of Bitcoin’s Ascending Triangle pattern?
Maria: Certainly! As per the current technical pattern, the breakout from the Ascending Triangle to the upside is likely due to the high density of buy orders present around the current price. However, we must keep in mind that the relative strength index (RSI) has slightly corrected and is still in overbought territory, indicating caution. The moving average convergence divergence (MACD) also suggests a slowdown in momentum, which could either stabilize the price or lead to a potential correction if the price breaks below the support line. Hence, it’s crucial to monitor these indicators closely for any shifts in trend.
From a broader perspective, consolidation after such a significant rise is healthy and indicates a possible pause
