On April 23, the Bitcoin (BTC) price continued the rally it had begun the previous day, creating another bullish engulfing candlestick in the process.
The increase initially went all the way up to $7,738, but dipped back shortly afterward and reached a close at $7,482.
Bitcoin Ascending Channel
The Bitcoin price is seemingly trading inside an ascending channel — one that has been in place since reaching a high of $6,900 on March 20. The price reached the support line of this channel on April 22 and has been increasing since.
SponsoredThe closest resistance area is found near $8,000, coinciding with the resistance line for this channel.
As for technical indicators, there is no bearish divergence in the RSI yet, which means that the price could continue its increase until the resistance of the channel. The presence of divergence at that point will be crucial in determining whether the price will break out.
Volume has been decreasing since the March 12 bottom, which suggests that the move has been losing its strength. However, yesterday’s candlestick had significant volume, meaning that one last push upward is likely, and also aligns with the rest of the analysis.
Short-Term Pennant
In the hourly chart, we can see that volume was massive on the breakout, making the movement legitimate. Since then, the price has created a symmetrical triangle, which is very likely to act as a continuation pattern, leading to another breakout.
If this occurs, it would complete the upward move towards $8,000, as outlined in the previous section.
To conclude, the Bitcoin has broken out above an important resistance level and validated it as support. The price has created a symmetrical triangle, which is very likely to act as a continuation pattern and take the price upwards towards $8,000.
For those interested in BeInCrypto’s previous Bitcoin analysis, click here.
