Crypto analyst Crypto Rover recently discussed the current state of Bitcoin’s price action, suggesting that while the cryptocurrency has experienced a slight bounce, it remains within a significant consolidation phase. However, Crypto Rover believes this consolidation phase is nearing its end, hinting at an imminent breakout.
Bitcoin has witnessed an uptick but continues consolidating, currently trading around $64,700. The market is experiencing a prolonged consolidation phase, with Bitcoin trading sideways for approximately 62 days.
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Despite the consolidation, Bitcoin is showing bullish signs, with each consolidation phase becoming shorter.
The cryptocurrency struggles to break above key resistance levels, suggesting a persistent downtrend. Notable resistance lies around the $64.7k mark, with a breakthrough likely triggering a significant upside.
If successfully held, Bitcoin is currently retesting a crucial support level, indicating a potential trend reversal.
He said that Bitcoin recently faced rejection from the downward-sloping resistance line, marking the fourth consecutive rejection. Breaking this downtrend would signify a significant turning point for the market, likely propelling Bitcoin higher.
Attention is now focused on this resistance line, with a breakthrough expected to fuel upward momentum.
Additionally, a notable pattern observed on the 12-hour timeframe is the formation of a substantial falling wedge pattern. A breakout from this pattern could lead to a reversal towards the upside, with a potential price target around $73,000, representing a substantial 15% upside move.
Funding rates remain negative, indicating low market euphoria and ample liquidity. The impending launch of the Hong Kong ETF could influence market sentiment, although Bitcoin is currently in a consolidation phase.
While there are concerns, such as Bitcoin’s recent break below the daily EMA ribbon and a bearish crossover on the weekly MACD, historical precedents suggest that these signals may not necessarily indicate a prolonged downturn.
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