Bitcoin Deep-Dive

To analyze Bitcoin's crucial level right now we have to go down to lower timeframes, such as the 4H or 1H chart.

However, before discussing the data just a quick reminder that overall nothing has changed. The high-level outlook is massively bullish. So, everything mentioned below happens on lower timeframes!

When checking the lower timeframes, we see Bitcoin in a ascending broadening wedge with high-volume spikes followed by pullbacks. This hints an increased selling pressure near resistance levels (in BTC's case new ATHs).

This pattern typically signals a potential reversal or slowdown in the uptrend, particularly if it forms after a prolonged upward movement. Moreover, the volume pattern supports the pattern perfectly since broadening wedges often feature volume spikes, as volatility increases with each oscillation.

If Bitcoin fails to hold above the lower boundary, this could signal a breakdown from the pattern, increasing the likelihood of a pullback.

On the other side, the current market can easily surprise us. Accordingly, a breakout above the upper boundary would suggest strong bullish momentum, but given the broadening structure, this would require significant volume and strength.

Conclusion

The ascending broadening wedge pattern implies caution. While Bitcoin remains in an uptrend, the expanding structure and increased volatility signal that the uptrend may not be as stable. Therefore, you should keep a close eye on the lower boundary for potential breakdowns.