Here Are the Possible Scenarios for Bitcoin in the Coming Week (BTC Price Analysis)

The Daily Chart

On the daily chart, the substantial uptrend in Bitcoin lost steam after breaking out from the $35K resistance zone and the middle trendline of the extended ascending channel. This transition led to a consolidation stage, presenting a crucial range between the resistance of $37K and the critical $35K support. Hence, Bitcoin’s future prospects will be determined by the price breaking out of this decisive range.

Despite several bullish signals indicating increased demand, the scenario of a short-term consolidation correction with minor retracements appears more plausible. Initial support for buyers is anticipated at the middle boundary of the ascending channel and the $35K support zone.

Source: TradingView

Examining the 4-hour chart, Bitcoin’s price movement decelerated around the crucial $35K resistance and eventually entered a consolidation phase.

Although the price managed to surpass this resistance, reaching $37K, it also formed an ascending wedge pattern. Ultimately, attempts to breach this level faced heightened supply, resulting in a notable rejection.

The presence of an ascending wedge pattern, signaling a potential price reversal, coupled with an expanded bearish divergence between the price and the RSI indicator, suggests a need for a short-term retracement. In the event that sellers take control, a long squeeze event could unfold, pushing the price below the established ascending wedge pattern. Key support levels in such a scenario include the 0.5 Fibonacci retracement level at $32,300.

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Author: CryptoVizArt

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