The BTC technical analysis displays a consolidation phase at a crucial support level of $18,850 with growing bullish influence teasing an upside breakout.
The BTC price action shows a rising buying pressure close to the crucial support level of 18,850 dollars resulting in a consolidation face instead of a bearish breakout. Furthermore, the growing bullish influence over the consolidation phase forms a double bottom pattern teasing a bullish breakout to challenge the longing resistance trendline. Will this bullish reversal result in a breakout rally and end the declining trend in Bitcoin?
The Bitcoin price action shows higher price rejection from the 50-day EMA. The market price offers a high likelihood Breakout rally to challenge the overhead resistance levels. The intraday trading volume in Bitcoin is $29.37 Billion.
BTC Technical Analysis
The BTC price action displays a Long coming declining trend under the influence of the resistance trendline. However, the high supply pressure at the resistance trendline has contained multiple bullish reversals from the $18,850 support level.
Currently, the price action displays a consolidation range at the $18,850 support level avoiding a bearish breakout with the overhead resistance of $19,700. Moreover, the increase in wind pressure results in a double bottom pattern within the consolidation range pleasing a bullish breakout.
The overhead resistance of $19,700 of the consolidation phase acts as the neckline of the bullish pattern. As for the price action analysis, the multiple long-wick candles above the consolidation phase from the 50-day EMA display increased supply pressure.
Therefore, the breakout rally will face opposition from the 50-day EMA and the resistance trendline. However, under a favorable bullish scenario, if the buying pressure breaks the resistance trendline, the unleased bullish momentum will result in a price jump to the $22,450 mark.
On a contrary note, if BTC prices turn down from the 50-day EMA, the prices will continue to consolidate at $18,850 with a constant threat of a bearish fallout.
The rising trend in the daily RSI slope within the nearly overbought reaches the Halfway line. This reflects an increase in the underlying bullish sentiments ready to make another breakout attempt. Additionally, the constant bullish gap between the rising MACD and signal lines reflects a steady increasing buying pressure.
Therefore, the technical indicators show a slow but steady increase in demand for Bitcoin. As a result, the BTC technical analysis forecasts a bullish breakout of $19,700 to challenge the resistance trendline. Hence, the sideline traders can find multiple buying opportunities at the current market price, with the short-term uptrend to the 50-day EMA at $20,200.
Resistance levels- $19,700 and $20,222
Support levels- $18,850 and $17,600