Disclaimer: The findings of the following analysis are the sole opinions of the writer and should not be taken as investment advice
Bitcoin, the world’s largest cryptocurrency, has been on a bull run since the end of 2020, with BTC showing no signs of slowing down on the charts. However, the crypto has been subject to minor corrections along the way, especially after establishing all-time highs one after the other. In the present case too, BTC seemed likely to see a brief fall in the short-term.
At the time of writing, Bitcoin was trading at $51,642, with the cryptocurrency having a market capitalization of $963 billion. Over the course of the past week, BTC has been trading within the limits of an ascending channel, with a breakout seemingly in the works too.
Bitcoin 4-hour chart
Source: BTC/USD, TradingView
Bitcoin’s price has moved within the confines of the said ascending channel formation over the past week. According to its price action mapped on the 4-hour chart, the crypto is likely to soon break out of the same. In most cases, a breakout from this formation often leads to a minor price correction. In such a scenario, BTC is likely to head to its support level around the $50k price range. In a more unlikely scenario, however, Bitcoin may fall all the way down to its second support level at $47,306.
The resistance around its current ATH has remained undeterred over the past 24-hours and if the coin fails to breach it in the coming hours, further price discovery for BTC may be temporarily put on hold.
Rationale
Bitcoin’s market indicators supported the possibility of a slight dip in price in the short-term. The RSI was moving out of the overbought zone and was heading closer to the neutral zone – highlighting a slight dip in buyers’ sentiment.
The MACD indicator may soon undergo a bearish crossover since the Signal line was continuing to rise and head closer to the falling MACD line.
Conclusion
Given the strong bullish momentum present in the Bitcoin market, one can expect the bull run to resume in the long-term. However, the cryptocurrency has been subject to price corrections and it looks like BTC will have to endure yet another one in the next 24 hours. This may push Bitcoin’s price to the $50,000-level, with the crypto likely to drop all the way down to the support around $47,000 as well.
