$BTC Did you know that?
Bitcoin
continued to consolidate on Friday after rising more than 10% on Monday amid rising optimism that the first spot Bitcoin ETF will be approved soon
were trading in tandem with the crypto apex but saw some bearish price action take them out of their inside bar patterns.
An inside bar pattern indicates a period of consolidation and is usually followed by a continuation move in the direction of the current trend.
An inside bar pattern has more validity on larger time frames (four-hour chart or larger). The pattern has a minimum of two candles and consists of a mother bar (the first candle in the pattern) followed by one or more subsequent candles. Subsequent candles must be completely within the range of the mother bar and each is called an “inside bar”.
A double or triple inside bar can be more powerful than a single inside bar. After an inside bar pattern breaks, traders want to watch for high volume to confirm that the pattern has been recognized.
Bitcoin Chart: Bitcoin reached close to the $35,150 mark on Tuesday and Wednesday and failed to break out of this area. All of the price action since Tuesday has occurred within that day's range, which has placed the crypto in a triple inside bar pattern, which is tilted bullish for continuation.
The inside bar series also formed on below average volume, which helps verify that the inside bar patterns are being recognized as a bull flag pattern with a measured movement of about 10%.
Bullish traders want Bitcoin to continue to consolidate so that the cryptocurrency's relative strength index (RSI) continues to fall, which could give the cryptocurrency enough power to break away from the mother bar and possible bull flag pattern .
Bitcoin has resistance above $35.593 and U$38,105 and support below at U$31,862 and U$31,418.
