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Bitcoin Price Analysis: When Will BTC Consolidation End?

Bitcoin all time high

Published June 8, 2022

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 The Bitcoin(BTC) price responding to the descending trendline, faced another reversal on June 7th. Thus, continuing with a follow-up candle, the coin price registered a 2.82% intraday fall and the formation of an evening star pattern. Accordingly, sustained selling pressure could pull the BTC price back to $28650

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Key points: 

  • The BTC price reversed from $32000 resistance with an evening star pattern
  • The rising MACD indicator’s line may soon reenter the bullish region
  • The intraday trading volume in the Bitcoin is $40.2 Billion, indicating a 13.2% loss

BTC/USDT ChartSource- Tradingview

Ever since the May month sell-off plunged the BTC/USDT pair to a low of $26350, the coin traders have witnessed a consolidation phase between $32000 and $28650. As a result, the BTC price has been resonating in the range for nearly a month, indicating uncertainty among the market participants.

Anyhow, this consolidation forms a great trading setup for interested traders as a breakout on either side of the range would trigger a directional rally. However, the area inside this range is still a no-trading zone.

Today, the BTC price is down by 2.82% as it reverts from the combined resistance descending trendline and $32000 resistance zone. An evening star pattern on reversal indicates the coin price may soon retest the $28650 bottom support.

However, if BTC provides a daily candle closing above the $32000 resistance, the potential rally would rise to $37000.

Technical indicator-

Bollinger Band: The narrowed indicator range accentuates the minor price consolidation. However, the BTC traders would witness a simultaneous breakout from the price and indicator’s range, offering an extra confirmation for traders.

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MACD indicator: Despite a later walk-in price action, the MACD and signal line gradually rising indicates growth in bullish momentum. This steady rally bolstered the possibility of a range breakout.

  • Resistance level- $32000, and $34100
  • Support level- $28650 and $26750

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From the past 5 years I working in Journalism. I follow the Blockchain & Cryptocurrency from last 3 years. I have written on a variety of different topics including fashion, beauty, entertainment, and finance. raech out to me at brian (at) coingape.com
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.
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