Bitcoin’s price remains in a state of indecision, confined within a tight consolidation range bounded by the 100-day and 200-day moving averages.

An impending breakout from this range will likely determine the asset’s short-term direction.

Technical Analysis

By Shayan

The Daily Chart

Bitcoin has been stuck in a multi-month consolidation between the $55K-$71K price range since March 2024, with no clear trend or direction emerging.

This prolonged period of sideways movement indicates an overall equilibrium between buyers and sellers, with accumulation occurring at the lower end of the range and distribution at the top. Despite this, a bearish sign has recently appeared as Bitcoin broke below the 200-day moving average at $63.4K.

However, the downward momentum was halted upon reaching the 100-day moving average at $61K, where the price has since entered a phase of low-volatility consolidation.

Bitcoin is squeezed within a narrow range, constrained by the 100-day and 200-day moving averages. This suggests that an impending breakout could determine its short-term direction. A decisive move outside this range would likely signal the next major trend.

The 4-Hour Chart

On the 4-hour chart, an ascending wedge pattern has formed during the recent prolonged consolidation phase. The price has been oscillating between this wedge’s upper and lower boundaries, which typically points to a continuation of the initial bearish trend if it breaks downward.

Following increased selling pressure near the 0.786 Fibonacci OTE level, Bitcoin experienced a significant rejection, causing the price to cascade toward the wedge’s lower boundary.

BTC is consolidating after receiving support at this level, but sellers aim to break below the wedge’s lower trendline, which coincides with the $60K support region. Should this breakdown occur, the next critical target for Bitcoin will be the $58K support region.