After hitting the all-time high of $112,000 a few weeks of sideways price action was not only likely to happen, it is also a good sign of a healthy bull market. The more the Bitcoin price traverses sideways, the further upwards the price is likely to climb once a breakout takes place. $BTC ranging for a month Source: TradingView The $BTC price has been ranging sideways for a good month now. Since breaking back above $102,000, the price has been up to make the all-time high, has meandered back down to make a low at $100,400, and is currently moving inside a wedge pattern that could break one way or the other. In favour of the bulls, the Stochastic RSIs for the short to medium term time frames have their indicators at the bottom. As can be seen in the chart above, the 4-hour indicators are just making their way up, so perhaps price may start rising. $BTC bouncing from 0.618 Fibonacci Source: TradingView Moving into the daily time frame it can be seen that a series of lower highs is starting to converge with a series of higher lows. It can also be noted that the 0.618 Fibonacci level is playing an important role. Since the big dip down to just above $100,000, the price has been respecting the 0.618 Fibonacci level at $104,300. If the price can now bounce from here, a breakout of the top trendline could be the result. In addition, if the price breaks down, things wouldn’t necessarily be that bad for the bulls, as more sideways price action could take place. Weekly chart shows potential bounce from good support structure Source: TradingView The weekly chart shows the potential lift-off point for Bitcoin. The support lines are drawn across from the last time weekly candle bodies made their tops at $102,000 and $104,000. If the price can stay above the $104,400 level at this coming weekly close, there is a good chance of a bounce, and at the very least more sideways price action that would act to build more price structure above this level and make it very strong support. 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.
