Yesterday, the price of Bitcoin experienced significant fluctuations, showcasing a volatile market. During this period, the buyers provided short-term support, leading to an increase in price towards the resistance range of $29,400 to $29,465. However, once the price reached this crucial area, it triggered a negative reaction, resulting in a range-bound trend on the price chart.
Presently, the prevailing market conditions have established an ascending channel on the lower time frames for Bitcoin. This channel is formed by connecting the series of higher lows, indicating a potential upward movement in the price. As long as the bottom of this channel holds strong, there is a possibility for the price to break through the first resistance level and subsequently reach the second resistance.
On the other hand, if the price fails to maintain support at the bottom of the channel, a continuation of the downward trend is anticipated. In this scenario, Bitcoin could decline further towards the support levels of $28,850 and $28,570, with the latter being deemed more likely.
In summary, Bitcoin’s recent price action has shown considerable volatility, and the current formation of an ascending channel on the lower time frames suggests the potential for an upward breakout. However, the price’s ability to hold the support at the channel’s bottom will be crucial in determining whether it reaches the resistance levels or continues on a downward trajectory. Traders and investors should closely monitor these critical levels to make informed decisions in this dynamic market environment. As always, it’s essential to consider risk management strategies to navigate the inherent uncertainties in cryptocurrency trading. Comment: The temporary surge in buying pressure caused Bitcoin’s price to reach the second resistance level around $29,670. However, this resistance prompted short-term buyers to take profits, leading to a brief downturn.
The price of Bitcoin made a false breakout beyond the upper boundary of a 5-minute ascending channel but later returned back into the channel.
If the lower boundary of this ascending channel is breached, and Bitcoin’s price fails to surpass the previous day’s high of $29,690, there is a possibility of a downward trend.
In such a scenario, the price might decline further to the $28,570 range as the first stage after a pullback to the channel’s upper boundary.
