Recently, we highlighted the likelihood of upward momentum in Bitcoin’s price.
BTC formed an ascending triangle pattern on the four-hour chart, breaking out and surpassing the $44,200 level from December 2023, which had previously acted as resistance and is now serving as future support.
Given the 10% increase in BTC’s price over the past three days, two potential short-term scenarios may unfold.
Firstly, BTC could encounter resistance at the top of the megaphone structure around $48,400, possibly consolidating at the top. Alternatively, it could break above this resistance, similar to the breakout in November 2023, marked above with the arrow pointing upwards.
Considering such bullish factors as the ETF approval, potential Federal Reserve rate cuts in quarter one, and the upcoming halving , it is not a stretch to expect the latter scenario will play out. To show this, we have placed the fractal of Bitcoin’s November 2023 price action at the bottom of the chart. This suggests the current price run might encounter resistance around $51,000. This price coincides with the Fibonacci extended level of 1.618 highlighted in the previous analysis referred to earlier.
The information provided herein is for educational and informational purposes only and should not be construed as financial advice, investment recommendation, or an offer or solicitation to buy or sell any securities. Cryptocurrency investments are volatile and high risk in nature, do not invest more than you can afford to lose.