Bitcoin (BTC) at $29,000, How Long Will Consolidation Last?

Bitcoin has held steady over the past 24 hours, but altcoins have dipped on their charts. Over the last week, the king coin continued to record sideways price action on the charts. The price of Bitcoin has been falling since November 2021.

On longer time frames, Bitcoin continues to show signs of an imminent bearishness. On a relatively short time frame, the gold coin could signal a price reversal.

BTC has made no gains in the past 24 hours. In the last week, it fell about 2% as the coin was mostly consolidating. Currently, BTC is between $28,000 and $29,000 as these two levels have been key demand zones for the coin.

Buyers appear to have apparently given up the initiative to dominate price action, and BTC may be eyeing the $20,000 price level as sellers continue their strength.

Bitcoin Price Analysis: One Day Chart

Bitcoin is at $29,000 on the one-day chart | Source: BTCUSD on TradingView

At the time of writing, BTC is priced at $29,100. The coin has formed a descending channel since November 2021, highlighting an extended bearish phase. The coin has touched $69,000 in November, which is considered an all-time high for the coin.

The price of BTC is currently trading sideways between $29,000 and $28,000. A break below this price could push the coin down to $19,000. The overhead resistance for the coin is $30,000 and to invalidate the bearish thesis, BTC needs to trade above $31,000.

For BTC to move north on its charts, broader market strength and buyers are needed.

technical analysis

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Bitcoin’s buying power rises on the four-hour chart| Source: BTCUSD on TradingView

Bitcoin’s short-term time frame looks bullish, pointing to a price reversal on the charts. The coin has formed a descending wedge pattern (yellow) on the chart.

The falling wedge pattern is associated with a trend reversal and can be considered bullish for BTC. Explosive price action usually occurs after a period of consolidation.

On the RSI, the indicator climbed and reached the 50 mark, which means buyers are returning to the market. This marks the positivity of the market.

The price of BTC is still below the 20-SMA, which means that sellers are still driving upward price momentum. An increase in purchasing power can push BTC above the 20-SMA line.

Related reading | Bearish Indicators: Is Bitcoin About to End Its Ninth Red Week?

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Bitcoin flashes a buy signal on the four-hour chart | DayDayNews Source: BTCUSD on TradingView

The technical outlook on the four-hour chart all points to a price reversal. Awesome oscillators determine the price momentum of the market. AO’s flashing green histogram is also associated with a buy signal, which reiterates the RSI reading.

Bollinger Bands show price fluctuations in the market, and if the Bollinger Bands tighten and contract, periods of price volatility can be expected. This could mean that BTC may aim to break out of its immediate resistance level in the upcoming trading session, provided the broader market and buyers extend support.

Related reading | Ethereum Slippage, What’s the Token’s Next Significant Trading Level?

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