Bitcoin, the world’s largest cryptocurrency, has been booming since late 2020 with BTC showing no signs of slowing down on the charts. However, the crypto has seen minor fixes along the way, especially after setting all-time highs one after another. Also in this case, BTC seemed likely to experience a short decline in the near term.
At the time of writing, Bitcoin is trading at $ 51,642, with the cryptocurrency having a market cap of $ 963 billion. Over the past week, BTC has traded within the limits of an ascending channel, with a breakout apparently underway.
Bitcoin 4 hour chart
The price of Bitcoin has moved within the limits of said ascending channel formation over the past week. According to its price action mapped on the 4-hour chart, the crypto is likely to come out of the same soon. In most cases, a breakout of this formation often leads to a slight price correction. BTC is expected to hit its support level around the $ 50,000 price range. However, Bitcoin could drop to its second support level at $ 47,306.
Resistance around its current ATH has not been deterred over the past 24 hours and if the coin fails to break through it in the coming hours, a new price discovery for BTC may be temporarily on hold.
Bitcoin’s market indicators have supported the possibility of a slight price decline in the near term. The RSI was breaking out of the overbought zone and moving closer to the neutral zone – pointing to a slight decline in buyer sentiment.
The MACD indicator may soon experience a bearish cross. The signal line continued to rise. And she was getting closer to the falling MACD line.
A strong bullish momentum is present in the Bitcoin market. We can expect the bull run to pick up in the long term. However, the cryptocurrency is subject to price corrections. And it looks like BTC will have to put up with another in the next 24 hours. This can push the price of Bitcoin to the level of $ 50,000. The crypto is likely to drop to support around $ 47,000 as well.
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