It seems like a weekend hike in bitcoin price of $ 1,300 just isn’t enough to guarantee more gains as the new week begins, at least some analysts think so.
The recent rally has brought the BTC price closer to an ideal sell position, according to independent analyst Vince Prince. In a note released on Sunday, the analyst stated that Bitcoin is approaching the “upper resistance cluster”, which it has recently rejected upward attempts.
The price ceiling is part of the Descending Channel formation, according to the chart below, shared by Prince. Bitcoin has been trading down inside the bearish structure in question recently. The leading cryptocurrency on Sunday formed another higher low (point D below when it did not go below the lowest point but rose with some up and down price movement in between), a move that usually follows a downward correction.
According to Vince, the bearish trend from point “D” will stop at point “E” located near the $ 17,000 support level. However, shortly after Vince released his rating, the BTC price moved above the upper trend line of the Descending Channel. However, the movement in question was accompanied by lower volumes, which cast doubt on its longevity as an act of breaking. Therefore, the probability of price re-entering the Channel seems high.
In addition, the crypto currency recently reached a record level of $ 20,000, but could not continue its upward movement due to its profit-taking sensitivity. The repeated attempt to approach $ 20,000 has encountered a similar selling trend.
Prince’s prediction for Bitcoin shows what might happen in the short term. In addition, Bitcoin’s mid-term outlook suggests it is in an Ascendant Channel formation, and the cryptocurrency may sooner or later approach $ 20,000 for a booming move. The Rising Channel outlook appeared on the support trendline that prevented the price from entering a bearish move repeatedly.
For example, the red circles in the graph above show the area where the buying sentiment is stronger. They all coincide with the Ascendant Channel support line. Meanwhile, retesting the support levels will often cause the price to rise towards the resistance trend line of the Channel. This raises Bitcoin to $ 21,000, a level that coincides with the upper trend line.
It is a matter of curiosity how Bitcoin will follow in the midst of these predictions.