The Bitcoin market has pulled itself out of the earlier $45k-$48k range and has been trading above $57k. At the time of press, the largest cryptocurrency was being traded at $58,335 with a market capitalization of $1 trillion.
The sudden surge which carried BTC to its new all-time high above $60k was followed by a correction. The value of BTC stumbled to $53k, however, it was since pushed higher by the traders.
Bitcoin six-hour chart
Source: BTCUSD on TradingView
The above chart noted these highs and lows witnessed over the past few days. BTC’s current market has been showing signs of consolidation and it may continue with this trend in the mid-term.
Reasoning
The Bollinger Bands had remained diverged after the correction and surge. This push in the price has resulted in the bulls remaining in charge of the current trend. The signal line slipped under the candlesticks indicating the rising pressure. Despite the correction, the 50 moving average was noting that the Bitcoin price has been building higher as it remained under the price bars.
Meanwhile, the Relative Strength Index [RSI] highlighted that as the buying pressure in the market rallied the price also surged. At the time of press, the RSI value was 54, which was close to the equilibrium zone. Currently, the buying and selling pressures were equalized given the value of BTC.
However, despite the bullish market, the momentum has remained low. This indicated that the market may not be prepared for a price swing and may continue to move along the current price range.
Conclusion
The above chart of Bitcoin indicated that the sudden surge and fall has caused the current value to move sideways. This sideways movement may continue as the buyers and sellers evened each other out in the market while the momentum remained low.
