After setting a new all-time high price on Wednesday (14), Bitcoin (BTC) appears to have confirmed the $90,000 level as support.
Trading at press time at $90,912, BTC is just 2.7% below its ATH of $93,477. With that in mind, should we expect new price highs or a steeper correction?
Bitcoin standard form
The 2-hour chart below shows that Bitcoin’s current price action has been forming a symmetrical triangle. This type of pattern consists of a descending trend line (DTT) and an ascending trend line (ATT).
Therefore, this triangle is considered a neutral pattern, with chances of both a breakout above the LTB and below the LTA. However, because the price is close to the LTB, and the cryptocurrency's macro trend is bullish, a breakout above the pattern seems the most likely scenario at the moment.
Bitcoin (BTC) Chart on TradingView
If this breakout happens, BTC would have a good chance of testing its ATH and even registering a new record price. However, the low trading volume recorded in the last few candles is worrying, as it shows less interest in the asset in the last few hours.
This drop in volume may be due to the fact that many traders and investors are taking profits. As highlighted by Fernando Pereira, an analyst at Bitget, US$5.4 billion was realized in the market in the last day.
When we enter a sequence of days with high profit taking, we must be alert, as we may be forming a top. Therefore, purchases here should be avoided.
Bitcoin Profit Taking
Read more: Top 5 Most Secure Bitcoin Wallets of 2024
Price prediction
The Relative Strength Index (RSI) on the 1-hour chart, on the other hand, is more optimistic. The indicator is currently above 50, which shows that buyers remain in control of the trend. In addition, it is below 70, which shows that there is room for further increases without the asset entering the overbought level.
Bitcoin (BTC) 1-Hour RSI on TradingView
Therefore, the current scenario is one of indecision. In this case, it will be necessary to observe Bitcoin's behavior within the triangle, with a breakout to either side defining the future trend of the asset.
The article Bitcoin (BTC) Price Prediction: What to Expect Today? was first seen on BeInCrypto.
