Bitcoin’s (BTC) Massive Ascending Channel Signals A Break to the Upside

By Bhushan Akolkar
Published August 30, 2021 Updated August 30, 2021
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Bitcoin’s (BTC) Massive Ascending Channel Signals A Break to the Upside

By Bhushan Akolkar
Published August 30, 2021 Updated August 30, 2021

Over the last week, the world’s largest cryptocurrency has been consolidating under $50,000 levels. On a weekly chart, BTC has lost 4.67%. As per data on CoinMarketCap, BTC is currently trading 0.5% down at $48,003 and a market cap of $901 billion.

However, if we look at the one-decade long-term chart of Bitcoin, the world’s largest cryptocurrency has formed an ascending channel and is poised to give a break to the upside, notes popular crypto analyst Will Clemente.

Bitcoin has continued to remain volatile over the last few months. As Bitcoin continues to show sideways movement in the last 10 days, it is trading in an interesting range of $46K to $50K.

The $46,000 level remains a strong 200 DMA for the crypto. On the other hand, there’s stiff resistance at $50,000. It will be interesting to see where does BTC gives its breakout first.

Is Bitcoin Preparing for September Correction?

Crypto analyst Lark Davis shares some interesting insights for the month coming ahead. Historically, September has been a month of corrections and consolidation for Bitcoin and the overall crypto market.

As mentioned in his above tweet, Bitcoin is facing strong resistance at $50,000. Thus, closing above it consistently for a few days can get it prepared for its run-up to $100,000 and more. Any strong breakout above $50,000 will set Bitcoin for a mega bull trend.

On this flip side, any breakdown under the 200 DMA will signal further pressure and downside in the price. With the recent rejections to $50K, Bitcoin traders have turned impatient, reports on-chain data provider Santiment.

“Now six days since Bitcoin crossing over (and then crossing back) $50k, traders appear to have gotten restless with the lack of return back to this coveted psychological price. Commentary has turned negative again, which is a solid recipe for a bounce,” reports Santiment.

Bitcoin is trading at an exact equal distance between its support and resistance. It will be interesting to see in which direction Bitcoin moves first.

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Disclaimer
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
About Author
Bhushan Akolkar
820 Articles
Bhushan is a FinTech enthusiast and holds a good flair in understanding financial markets. His interest in economics and finance draw his attention towards the new emerging Blockchain Technology and Cryptocurrency markets. He is continuously in a learning process and keeps himself motivated by sharing his acquired knowledge. In free time he reads thriller fictions novels and sometimes explore his culinary skills.

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