Bitcoin (BTC) has been trading horizontally in the past few months. Now, if different technical patterns are examined, whether the leading crypto asset will continue its upward trend; shown depending on the downward movement.
Bitcoin is consolidated in a narrow range without any indication of where the break will be. Since the beginning of May, the price has been stuck mostly between the $ 8,900 and $ 10,000 range. Due to the importance of these support and resistance levels, leaving this area will be the catalyst that determines the direction of the BTC trend. Until this happens, traders have to wait so that they don’t get stuck on the wrong side of the range.
Despite the uncertainty around Bitcoin, the TD inline indicator predicts that momentum is slowly rising for the bearish trend. This technical index presented a sales signal with green candles at the beginning of the month. Four candle corrections are predicted before Bitcoin’s historic uptrend continues.
According to this scenario created by popular analyst Wilyl Woo, Bitcoin was preparing to enter a new bullish cycle at Christmas, but this did not happen due to the sudden collapse and global epidemic in mid-March. According to Woo’s opinion based on a technical model, a bear market must be experienced before entering the bull market.
In this case, the price must fall below the $ 8,900 support level before Bitcoin’s bearish trend can be verified. This price level is an important obstacle as it adds extra strength to both the 50% Fibonacci recovery level and the 50-week moving average.
As BTC goes down, it can find new support around the 100-week and 200-week moving averages with 61.9% and 78.6% Fibonacci recovery levels. This wall now hovers around $ 7,700 and $ 6,100, respectively.
It is a fact that a significant rise in demand may jeopardize the downward trend. If the scenario takes place, according to the famous analyst, after the downfall, Bitcoin will first test the $ 10,000 level and then the $ 11,500 and $ 13,800 levels.