Bitcoin has been trying to break the $70,000 price mark for several days now. Every time it gets close to the target, something new fills the market with fear and BTC fails its mission. Now it feels like a video game where you almost killed the boss but missed the opportunity. Let’s take a look at what Bitcoin’s technical analysis has to say.
Bitcoin Display Cup and Handle Pattern
The weekly chart of Bitcoin shows a cup and handle pattern. This pattern reflects a continuation of the uptrend once the handle is fully formed. Looking at the chart, it looks like the pattern is about to end, which means that a price rally is coming. However, it is very likely that there will be a slight decline before Bitcoin begins its journey to another all-time high.
At the time of writing, the Bitcoin price is down 1.77% from the previous day and is hovering around $63,093. The most recent major support level is seen at $61,693, which means the price could fall by another 2.24%. Just two days ago, Bitcoin rose 7.79% to $64,988 before finally closing at $64,085.
Multiple signals on daily chart
The daily Bitcoin chart looks more interesting than the weekly chart. Here we can see several indicators pointing to an uptrend in the near future. However, there are also negative factors that signal a pattern failure.
Bitcoin’s movements since March of this year have created a downward channel pattern. This pattern and the MACD indicator foreshadow an upcoming price surge.
One thing that gives a negative signal is the Death Cross. The 200 moving average crossing above all other MAs including the 50 supports the idea that we may see a pullback. Everything else is bullish. This includes the MACD line crossing above the Signal line. If it turns green on the Bitcoin chart, it gives hope for a bullish streak and tells us that the wait is almost over.
Future Prospects
Most of the signals are pointing in one direction, that Bitcoin price is about to rise significantly. August and September have historically been bearish for Bitcoin. But this time, it looks like BTC is about to change. However, traders should not let their guard down, as such bullish sentiment can be very damaging when the market is falling.