Bitcoin Price Prediction: Bitcoin is the largest cryptocurrency by market cap to trade sideways this week, resonating between the $71,600 and $68,400 sideways levels. This consolidation with short body candlesticks does not reflect a clear opening of buyers or sellers for this asset. However, analysis of the 4-hour chart reveals that this price movement is a bullish pennant pattern formation, indicating a correction after the rally in preparation for the next jump.
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Will BTC price head towards $75,000?
Bitcoin price rebounded from its previous correction in the fourth week of March as buyers witnessed notable support at the 38.2% Fibonacci retracement level. The bullish reversal caused the coin price to rise by 17.7% and challenge the resistance at $71,500.
However, the price shifted sideways below this resistance and formed a narrow range formation in 4 hours. This sideways movement suggests consolidation before the halving as BTC price stabilizes in anticipation of future events that may lead to increased volatility.
Additionally, on technical charts, this range formation is shown as a bullish pennant pattern development. This structure allows buyers to regain momentum before the recovery trend returns.
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Bitcoin accumulation trend shows strong signs amid consolidation
In the latest analysis by respected trader @alicharts, the Bitcoin Accumulation Trend Score shows a solid accumulation pattern even as the cryptocurrency consolidates near all-time highs.
This trend score is represented graphically through color changes, indicating a transition from cool to warm colors, culminating in purple, indicating a stronger accumulation phase.
Bitcoin price is currently trading at $70,576, with an intraday increase of 1%. With a high possibility of a new recovery, BTC price is likely to break out of the upper trendline of the pattern and post-breakout gains could reach $73,800, followed by $81,700.
technical indicators
- Exponential moving average: The rise of the 20 and 50 EMA reflects a short-term trend that is consistent with a long-term uptrend.
- Convergence-divergence of moving average: As MACD and signals approach a bullish crossover, recovery sentiment among market participants will accelerate.
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