Published 16 hours ago
The Bitcoin price has been trapped between the $16300 and $16920 barrier for the last two weeks, creating a narrow range. This consolidation phase in the crypto market shaped the bitcoin price into a double-bottom pattern. This pattern displays itself as the letter W and is one of the most common technical chart patterns observed in market bottoms.
Key points
- The area between the $16300 and $16920 mark can be considered a no-trading zone.
- Considering the high possibility, a bullish breakout from $16920 will replenish the trapped bullish momentum.
- The intraday trading volume in Bitcoin is $16.2 Billion, indicating a 22.9% gain.
Source-Tradingview
The Bitcoin price action forming a W letter projects that the coin has rebounded twice from the same horizontal support level ($16300) and keeps the neckline resistance($16920). Amid the recovery sentiment in the crypto market that has arisen since the beginning of 2023, the Bitcoin price rebounded from the $16300 support and rose 3.65%, and hit the $16920 barrier.
The bullish recovery backed by rising volume indicates a sustained recovery in prices. By the press time, the Bitcoin price trades at $16855 and still struggles to break the neckline resistance.
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Thus, until the BTC price wavers between the mentioned level, the potential traders should avoid entering the market.
Conversely, a daily candle closing above $16920 will trigger the bullish pattern and intensify the underlying bullish momentum. The post-breakout rally may drive the coin price 2.6% higher and surpass another resistance barrier of $17360.
Technical Indicator
RSI: while the Bitcoin price is still moving sideways, the RSI slope, which determines the strength in recent price action, is moving upwards. Thus, this positive divergence indicates a higher possibility for a $16920 breakout.
Bollinger band indicator: the recent recovery has pushed the coin price above the indicator’s midline, indicating bullish sentiment among the coin traders. However, the upper band of the indicator resides near $16920, increasing the resistance power if the level.
Bitcoin Price Intraday Levels
- Spot rate: $16855
- Trend: Bullish
- Volatility: Medium
- Resistance levels- $16930 and $17360
- Support levels- $16330 and $15600
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
Source: https://coingape.com/markets/this-chart-resistance-breakout-is-crucial-to-kickstart-bitcoin-price-recovery/