Bitcoin Price Set for Breakout After Week of Consolidation
The Bitcoin price has been consolidating over the past seven days, but some analysts believe this period of stability may be about to come to an end. After a strong rally that topped out at $79,500, the price has generally gone sideways, reaching a new high of $81,235.
A break below the 0.618 Fibonacci level was expected by some, but instead, the price touched it and rebounded. Two falling wedges have formed as part of this consolidation, both of which have broken to the upside, with the most recent one breaking on Wednesday.
Some believe that a cup and handle pattern may be forming, although it's not ideal due to the rounded bottom and gentler ascent. However, if the price reaches the resistance level and there is a shallow correction before heading back up again, this pattern could still be confirmed.
The weekly RSI trendline break is also seen as a positive move, which could add rocket fuel to the rally if it's confirmed at the end of next week. The 50-week SMA remains a significant resistance level, but breaking through it could allow the price to rise further.