BTC-“Converging Triangle Appearing on Top”

6-Hour Analysis:

Big Picture: Following a significant price rise rally, the price is finally entering a period of consolidation. The benchmark will stay in a consolidation environment, swinging to both sides as participation and momentum decline due to severely oversold circumstances. As price breaks out of this consolidation, the direction will most likely dictate its next move. A further push higher would allow price to penetrate further into the resistance, while a break lower would allow for a re-test of lower supports before further advances. 

On the Upside Yesterday’s session’s initial barrier at 30,575 restricted the upside possibilities. This level holds strong intra-day challenge for the session. Breaking through this hurdle will extends Bitcoin’s upside potential towards 31,790 to 32,650. These upcoming levels have not been observed since June 2022, over a year now. Price is likely to get heavier at these levels and could very well trigger strong rounds of profit-takings. Hence caution is advised for the sessions to come.

On the Downside Bitcoin has been trading around the psychological threshold of 30,000 for the previous several hours. Price has been held quite tight by the supports between this psychological level of 30,000 and the level of 29,800. Despite several testing, sellers have failed to break through key support levels in order to ignite bigger waves of profit-taking. Both supports remain valid for the session at 30,000 and 29,800. Lower supports are unlikely to be exposed unless sellers break these supports, while effectively breaking these supports will prolong the profit-taking situation into 29,200 to 28,800 levels.