Bitcoin Price Analysis: Is It Time To Buy BTC/USD ‘Dip’ And Hope $5,000 Will Hold?
- Bitcoin price settles above $5,000 as consolidation commences across the crypto market.
- The formation of a bearish pennant pattern introduces new risks with BTC/USD likely to slide under $5,000 and $4,000 respectively.
Bitcoin price is presenting a couple of scenarios likely to leave most investors in confusion and dilemma. The entire weekend session saw $5,000 stand out as key support. Even though an assault at $6,000 failed to materialize in further gains, however, losses were stopped above $5,000. This has presented some semblance of stability for the largest cryptocurrency by market capitalization. For this reason, some buyers are contemplating rejoining the market and contribute to pulling the price above $6,000.
The Pennant Pattern
Bitcoin formed a bearish pennant pattern. This pattern, when formed, signals a continuation of the former trend before the consolidation began. Bitcoin price is still under great risk of breakdown especially if the pattern support is shattered. Moreover, it could be catastrophic for Bitcoin if support at $5,000 gives in, which would encourage more selling, forcing BTC/USD down a painful path with a bearish target on $3,000.
BTC/USD 4-hour chart
Bitcoin Price Technical Picture
At the time of writing, Bitcoin is exchanging hands at $5,278 amid a gradually growing bearish momentum. It is essential that the buyers defiantly kick Bitcoin above the pennant pattern resistance and focus on breaking the hurdle at $6,000.
Meanwhile, the prevailing technical picture suggests that Bitcoin price could continue to settle sub-$5,000. The RSI’s sideways motion between 30 and 40 emphasizes on a possible sideways action that could lead to a mundane choppy market.
Bitcoin Key Levels
Spot rate: $5,251
Relative change: -100
Percentage change: -1.92%
Volatility: Low
Trend: Bearish short term bias
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