Bitcoin Consolidation Ends in Spectacular Fashion

The Bitcoin price has been holding steady for ten days, a period of consolidation that could end in spectacular fashion. Unlike other asset classes, such as stocks and precious metals, Bitcoin has been performing well despite rising bond yields. In the past, Bitcoin's price would have mirrored the US stock market, but since emerging from its bear market, it has been a different story. The 4-hour time frame chart shows the price respecting the 0.25% and 0.5% demarcation lines, with a potential breakout to the top of the channel.

A downsloping trendline has been drawn in, which could indicate a bearish pattern, but the price is currently trying to break beyond it. The Stochastic RSI has its indicator lines coming down at a faster rate, and the Relative Strength Index is following along the top of the descending trendline. If the price breaks through, a decent bounce would be reflected, but if it falls through, a collapse in the price action is expected.

The weekly time frame reveals that after testing the $83K support level, the price is ready to go higher. This is because the price has only just broken out of the bull flag, and it would be expected to rise quite a bit higher to get near its measured move to the upside of $94K. The Stochastic RSI indicator lines have crossed bullish, and the MACD for the weekly is recording a steady upward trend.