Bitcoin price analysis shows that the pair is readying for its next turn of events which can either be extremely bullish or bearish. As the BTC/USD pair touches $24,900 barrier, the bulls are elated for higher levels and the bears are busy preparing for the next onslaught. The major cryptocurrency is ripe for its next big move.
The BTC/USD pair is nearing rejection zone and the psychological level of $25,000 where the bulls will face the eventual double top pattern. The buyers are surely trying to maintain the momentum going higher and the 20-day exponential moving average is putting the pressure on the bulls. The widening Bollinger Bands is also hinting at upcoming volatility in the pair.
Bitcoin price movement in the last 24 hours: Two consecutive days of higher highs
Bitcoin price analysis shows that the pair has posted two consecutive days of higher price pattern. Currently, the pair is trading at $24,480 and is comfortable above the $24k barrier where the higher daily candlestick will also support the price. The dwindling volume data suggests that bulls are losing the momentum through the weekend.
The upside momentum may turn weaker as the weekend dust settles down amid low liquidity as per Bitcoin price analysis. The daily chart reflects that there is a ‘Cup & Handle’ pattern formation in the bullish territory which can ignite further gains in the pair. However, onward journey demands massive volumes since the BTC/USD pair faces stiff resistance from the bears near $25k barrier. Bitcoin price analysis shows that the swing high at $24,900 is complete and bulls need to strengthen their resolve to move higher price levels.
BTC/USD 4-hour chart: Will double top pattern result in a pullback?
The emergence of the double top pattern in the BTC/USD pair is what is causing concern among the bulls. The low volatility on the weekend coupled with minimal volumes can make matters worse for the king of cryptocurrencies. The immediate price pullback from $24,900 can be due to this pattern formation. The pair fell towards $24,350 support zone on the hourly charts.
The additional buying can take the pair towards $25,000 resistance zone where it can once again encounter the same repulsive force. The MACD indictor shows a bullish crossover and it can trigger a short-term buying spree. If challenged, the price can fall towards the 20-day moving average and even decline to $23,700 level over the weekend.
Bitcoin price analysis conclusion: Broadening pattern may hint at higher prices
The upper boundary of the bearish flag pattern has been breached by the BTC/USD pair. The rejection from upper limits at $25,000 shows that the short-term outlook can turn bearish. The RSI oscillator shows a higher tick on the hourly charts. Such confluence of the signals can mean diverging price patterns as per Bitcoin price analysis.
An extreme case of price correction can take the BTC/USD pair towards $21,000 support. However, it seems highly unlikely considering the higher uptick on the hourly charts.
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Source: https://www.cryptopolitan.com/bitcoin-price-analysis-2022-08-13/