• Bitcoin (BTC) prices have been in a bearish channel for the past few weeks, dropping 4.65%.
• BTC price action forms a consolidation range within the bearish channel, facing resistance from the 50 EMA in the 4-hour chart.
• A bullish reversal could challenge the resistance of the consolidation range and potentially push Bitcoin price to $31,474.
Bitcoin Price Drops 4.65%
Despite trending ETF news, Bitcoin prices failed to display any bullish moves over the past few weeks as a downtrend gained momentum leading to a 4.65% drop. The falling trend has now formed a bearish channel pattern in the 4-hour chart which is highlighted by a death cross.
Consolidation Range Formation
The BTC price action in the 4-hour chart shows a consolidation range formation with constant resistance from the 50 EMA between $29,000 and $29,800; limiting any possibility of a bullish breakout to test higher resistances. Additionally, stochastic RSI displays a bearish crossover while daily RSI remains sideways below halfway line; all pointing towards further bearish continuation.
Four Consecutive Doji Candles Forming
Currently, four consecutive doji candles are forming at the base of this consolidation range which projects an important signal for possible bullish turnaround if buyers manage to not close below $29000 mark. If successful, this reversal can challenge existing resistances and break out towards $31,474 allowing bulls to take control of BTC’s market movement again.
Potential Breakout For Bulls
Optimistically speaking, if bulls are able to overcome these resistances then they may be able to open up another potential upside targeting above $35K again and pushing BTC prices higher than before. However this will depend heavily on investors sentiment and their confidence levels so it will be interesting to see how things shape up over time..
It’s unclear whether or not Bitcoin prices will resurface above $30K as we remain within a bear channel; but what seems certain is that bulls must first find strength in order for BTCto break outside its current consolidation range before thinking about taking it higher once again..