• Bitcoin’s price is currently going through a phase of consolidation and has reached the 100-day moving average of $26,922.
• If it falls below the 100-day moving average, the lower threshold of the channel of around $24K and the 200-day moving average of $23K could be potential price targets.
• Analyzing the 4-hour timeframe, a flag pattern has been developed during the recent correction phase of the market.
Bitcoin Attempts to Push Above $27K
Bitcoin’s price is currently consolidating after reaching its 100-day moving average of $26,922. In order to break out from this consolidation period, two significant support areas need to be taken into consideration.
On the daily chart, if Bitcoin fails to find support at its current level then it may fall below its 100-day moving average and target either the lower threshold of its ascending channel ($24K) or even its 200-day moving average ($23K). However, if BTC finds support then an attempt to surpassing its significant resistance level at $30K is likely.
On analyzing the 4-hour chart, a flag pattern has been formed within this current consolidation phase. The lower highs and lower lows indicate that there are potential targets for correction stages between 61.8% ($23,923) and 50% ($25,274) Fibonacci retracement levels.
Potential Bullish Rally
If BTC breaches these two support levels at 61.8% or 50%, then we can anticipate a bullish rally as it attempts to push above $27K again towards higher levels in anticipation for another ATH (all time high).
Although BTC looks bullish on both short term and long term charts but investors should always practice risk management when trading cryptocurrencies in order to avoid any unexpected losses due to volatile nature of this asset class. Hence investors should always set stop losses according their desired risk appetite before entering into any trade positions with cryptocurrencies like Bitcoin (BTC).
In conclusion, after testing several support levels Bitcoin’s price might soon embark on another bullish rally as it pushes above $27K mark again in anticipation for another ATH (all time high). Therefore having proper risk management strategies while trading with cryptocurrencies like Bitcoin will help investors manage their positions better and potentially secure profits in upcoming bull run market cycles.