The Bitcoin price has been going sideways since the beginning of June. Could this potential accumulation period be coming to an end? Will a possible bottoming pattern help the Bitcoin bulls t
The Bitcoin price has been going sideways since the beginning of June. Could this potential accumulation period be coming to an end? Will a possible bottoming pattern help the Bitcoin bulls to rally the price all the way up to $76K?
Source: TradingView
In the short term time frame it has to be admitted that the $BTC price looks as though it may be topping out at the confluence of the top of the descending channel and the $64,360 horizontal resistance level. Most shorter term momentum indicators have reached, or are reaching their top limits, so it might be expected that the price starts to make its way down from here.
Problematically for the bulls this would mean yet another lower high in a series of such that goes back to the last local peak on the 21 July. If the bull market trendline and the horizontal support at $62,250 don’t hold, a plunge down to $60K could be next.
Source: TradingView
The daily time frame illustrates a huge possibility for the bulls. An inverse head and shoulders pattern may be playing out. Given that the $BTC price is potentially at a bear market bottom, if this pattern does complete, it would have a good chance of sending the price up to the full extent of the measured move to $76K. The drawn-in path with the arrow shows a possible route to the neckline of the pattern and beyond.
Nevertheless, caution should be employed here. The $BTC price is currently up against the top of the channel as already mentioned. The balance of probabilities suggest that a rejection does take place. The ascending wedge in the RSI at the bottom of the chart also bears this out. The indicator line has fallen out of the bottom of the wedge and looks to be confirming the breakdown now.
All this said, there is still the possibility that the right shoulder could be formed lower down. A dip all the way down to $60K would still not negate the pattern.
Source: TradingView
The weekly time frame chart for the $BTC price illustrates that all is still hanging in the balance. For the bulls, the price is above the bull market trendline, and there is the possibility of the inverse head and shoulders playing out. For the bears, one small slip and the price would be below the bull market trendline and if confirmed, the bottom of the channel would likely be the next move.
The RSI in this time frame reveals that the indicator line is not far from the downtrend line - breakout or rejection? Then at the bottom of the chart is the Stochastic RSI. Currently, the indicator lines have straightened out and the cross-down has disappeared. The price action for the rest of this week will be key. If it continues to the upside a breakout would be likely. If it comes back down and finishes the week below the bull market trendline, watch out!
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
