Bitcoin Price Prediction: Bitcoin, the largest cryptocurrency market cap traded sideways this week, resonating between the horizontal level of $71600 and $68400. This consolidation with a short body candle reflects no clear initiation from buyers or sellers towards this asset. However, an analysis of the 4-hour time frame chart revealed this price fluctuation as the formation of a bullish pennant pattern, indicating a post-rally correction preparing for the next leap.
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Is BTC Price Heading to $75000?
The Bitcoin price rebounded from its last correction in March’s fourth week as buyers witnessed notable support at the 38.2% Fibonacci retracement level. A bullish reversal propelled the coin price 17.7% to challenge resistance at $71500.
However, the price shifted sideways below this resistance creating a narrow range formation in 4 hours. This lateral movement also hints at a pre-halving consolidation, as the BTC price stabilizes in anticipation of future events that could lead to heightened volatility.
Moreover, the technical chart shows this range formation as the development of a bullish pennant pattern. This structure allows buyers to regain strength before resuming a recovery trend.
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Bitcoin Accumulation Trend Flashes Strong Signals Amid Consolidation
In the latest analysis from the respected trader @alicharts, the Bitcoin Accumulation Trend Score indicates a robust pattern of accumulation, even as the cryptocurrency consolidates near its all-time highs.
This trend score is graphically represented through color changes, showcasing a transition from cooler to warmer tones, culminating in purple hues that signify a stronger accumulation phase.
The Bitcoin price currently trades at $70576 with an intraday gain of 1%. With a higher potential of renewed recovery, the BTC price is likely to breach the pattern’s upper trendline, the post-breakout rally is likely to hit $73800, followed by $81700.
Technical Indicator
- Exponential Moving Average: the rising 20 and 50 EMA reflect a short-term trend aligned with the long-term uptrend.
- Moving Average Convergence Divergence: A MACD and signal nearing a bullish crossover would accelerate the recovery sentiment among market participants.
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