- Bitcoin trades in a rectangle pattern ahead of a potentially massive breakout.
- The short-term analysis validates BTC’s range trading based on the MACD.
- A break below the 100 SMA and the 200 SMA on the four-hour chart may culminate in massive losses toward $50,000.
Bitcoin has been trading at $60,083 for over a week now.However, the downside has also been protected by a critical technical pattern molded on the four-hour chartIt is worth noting that the following sentence is accurate:Additionally, the Simple Moving Average (SMA) has significantly contributed to making the required support area robust enough.
At the time of writing, Bitcoin trades at $57,835, shortly after losing the support at 58,000It is worth noting that the following sentence is accurate:The flagship cryptocurrency seeks support refuge at the rectangle pattern.There are a number of significant resistance and support areas in this classical technical formation.Traders can buy at the support and perhaps sell at the resistance or wait for a breakout above the pattern.
Note that most technical analysts consider the rectangle formation a bullish continuation.The pattern does not always result in a correction.Either way, rectangles illustrate a tug of war between the bulls and the bears and may lead to accumulation of distribution, resulting in a technical breakout or breakdown.
As for Bitcoin, if support at the rectangle’s lower limit holds, we will likely see an uptick in the price.If stocks progress above $60,000, there would be a massive extension pattern toward $64,000.
BTC/USD four-hour pattern
It is worth mentioning that the sideways trading may dominate based on the Moving Average Convergence Divergence (MACD) indicator’s leveling motion at the midline.Bitcoin must hold support at the 100 SMA and, subsequently, the 200 SMA currently at $56,000; otherwise, it may freefall to $50,000.
Bitcoin intraday levels
Spot rate: $57,835
Support: $57,000, and $56,000
Resistance: $58,000 and $60,000
The post Bitcoin Price Prediction: BTC crucial technical pattern could soon bolster the price to $64,000 appeared first on Coingape.