- Bitcoin price shows a tightening of its three-week rangebound movement.
- An ascending triangle forecasts a 7.6% upswing to $30,707.
- A four-hour candlestick close or a decisive breakdown of the $26,662 support level will invalidate the bullish thesis for BTC.
Bitcoin price has been highly consolidative for more than three weeks as it trades between two key levels. Despite the stellar performance of Q1 2023, BTC remains clueless about where it wants to head next. But things could change this week and result in a directional move soon.
Read more: Bitcoin Weekly Forecast: Breaking down key BTC levels to accumulate for Q2, 2023
Bitcoin price and its next move
Bitcoin price has been consolidating since March 17 in the form of an ascending triangle. This technical formation contains higher lows and equal highs connected via trend lines. The setup forecasts a 7.6% upswing, obtained by adding the distance between the first swing high and swing low to the breakout point.
There are two ways for a breakout to occur for Bitcoin price. The first one is where BTC flips the $28,520 hurdle into a support floor, triggering a move to $30,707.
The second option is where Bitcoin price sweeps the triangle’s hypotenuse at $27,660 to collect the sell-stop liquidity. This move will liquidate early bulls and trap bears, creating a perfect mix of capitulation. After such a liquidity run, BTC is likely to head higher and flip the $28,520 hurdle to trigger a move to $30,707.
BTC/USDT 4-hour chart
While the bullish outlook is logical for Bitcoin price, it might only come if the consolidation continues for a fourth week. On the other hand, BTC might dismiss the ascending triangle scenario and deviate below the previous week’s low at $27,166.
The worst-case scenario would occur if Bitcoin price produces a four-hour candlestick close below the $26,662 support level. This development will invalidate the bullish thesis for BTC and potentially trigger a nosedive into the three-day breaker, extending from $25,200 to $23,827, which is a long-term play as detailed in a previous post.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
US presidential election outcome could shape the future of crypto
US citizens will go to the polls to elect a new president on November 5, and their choice could be key for the future of the crypto industry and thus the price outlook for Bitcoin (BTC).
Bitcoin ETFs beat Gold ETFs with 65% gain since launch
Bitcoin ETFs have reshaped the digital asset investment landscape since their approval in January. Their total assets under management climbed over $70 billion during the weekend, placing them ahead of other investment products, including gold.
XRP eyes 10% rally amid relisting across crypto exchanges and growing institutional demand
Ripple's XRP is trading at $0.5050 up slightly by 0.2% in the past 24 hours as it struggles to sustain a move above a key symmetry triangle resistance. Meanwhile, in its recently released Q3 report, Ripple noted the rising listing and relisting of XRP across crypto exchanges and global platforms.
Ethereum Price Forecast: ETH struggles below $2,500 amid State of Michigan pension fund investment in ETH ETF
Ethereum is trading near $2,420, down about 1% on Monday, but could bounce off a key descending trendline close to the $2,258 historically high demand zone. Meanwhile, the State of Michigan pension fund revealed an investment of $11 million in ETH exchange-traded funds.
Bitcoin: New all-time high at $78,900 looks feasible
Bitcoin price declines over 2% this week, but the bounce from a key technical level on the weekly chart signals chances of hitting a new all-time high in the short term. US spot Bitcoin ETFs posted $596 million in inflows until Thursday despite the increased profit-taking activity.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.