Bitcoin’s price is consolidating in a pennant structure, signaling potential for a bullish breakout.
Analysts suggest that $100,000, a psychological resistance, may be tested soon.
Reclaiming the four-hour trendline strengthens Bitcoin’s bullish momentum heading into the next phase.
Bitcoin’s four-hour chart trend holds on to its ‘buy’, the upward trend line and is still hanging in there. Notice, however, that, after such movement, the cryptocurrency recovered this trend on Wednesday and triggered a higher move in the following days’ expectation. In line with the recent formation of the price action, it could be said that an indecision is currently in development by the bitcoin price.
Technical Patterns Hint at Imminent Movement
Bitcoin is possibly in a pennant formation, according to market analysts. During a period of low relative fluctuations in price, the prices usually follow the geometric pattern where the two lines of trends converge and the earlier trend is likely to continue. In the case of Bitcoin, for instance, what is shown in the prior trend line is an uptrend that may suggest a bullish breakout is coming.
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The cryptocurrency has a good standing in regards to digital support, with price buyers actively participating in the market and supporting the price at certain levels. Similarly, the presence of the upward sloping trend line brings to the bearishness besides this sign of possibly ready for another leg up.
Psychological Barrier at $100,000
The trading view of Bitcoin now suggests higher prices but the psychological level of $100,000 is still a major consideration. Formerly, large round numbers have proved to be good resistance levels because many a trader and investor will consider them as points for exit.
Nevertheless, market participants are convinced that further accumulation and the growing attention of institutional investors will be enough to overcome this hurdle. Breaking of this mark will set a new record for the cryptocurrency and put it firmly among the most valuable assets in the digital economy.
A $100,000 plus transition may result in volatility and high trading activities due to responses to the price changes. On the other hand, if the coin failed to expand this consolidation phase we might see Bitcoin testing lower supports and here we might see the buyer interest again.
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