Bitcoin Price Hinges on Clearing Critical Technical Level
Gareth Soloway, chief market strategist at Verified Investing, has analyzed Bitcoin's recent rally and identified both bullish and bearish signals.
The price of Bitcoin has approached a critical technical level, near $82,865, that could determine the start of a genuine trend reversal. However, despite the rally, Soloway notes that this isn't a confirmed bull market yet.
The current pattern is one of lower highs and lower lows, which is technically a downtrend. The price has not broken above its prior pivot high near $82,865, with the recent rally topping out around $82,300. This means that Bitcoin remains in a downtrend until this level is cleared.
Soloway identified two separate bear flag trend lines from earlier price action that converge right around where the current rally has stalled. He notes that these trend lines are not coincidental but rather technical reason the rally has been 'capped' for now.