The Bitcoin price has been trapped between the $16300 and $16920 barrier for the last two weeks, creating a narrow range. This consolidation phase in the crypto market shaped the bitcoin price into a double-bottom pattern. This pattern displays itself as the letter W and is one of the most common technical chart patterns observed in market bottoms. Key points
The area between the $16300 and $16920 mark can be considered a no-trading zone.
Considering the high possibility, a bullish breakout from $16920 will replenish the trapped bullish momentum.
The intraday trading volume in Bitcoin is $16.2 Billion, indicating a 22.9% gain.
Source- Tradingview The Bitcoin price action forming a W letter projects that the coin has rebounded twice from the same horizontal support level ($16300) and keeps the neckline resistance($16920). Amid the recovery sentiment in the crypto market that has arisen since the beginning of 2023, the Bitcoin price rebounded from the $16300 support and rose 3.65%, and hit the $16920 barrier. The bullish recovery backed by rising volume indicates a sustained recovery in prices. By the press time, the Bitcoin price trades at $16855 and still struggles to break the neckline resistance. Also Read: Is Mining Worth? Will Bitcoin Mining Companies Survive In 2023? Thus, until the BTC price wavers between the mentioned level, the potential traders should avoid entering the market. Conversely, a daily candle closing above $16920 will trigger the bullish pattern and intensify the underlying bullish momentum. The post-breakout rally may drive the coin price 2.6% higher and surpass another resistance barrier of $17360. Technical Indicator RSI: while the Bitcoin price is still moving sideways, the RSI slope, which determines the strength in recent price action, is moving upwards. Thus, this positive divergence indicates a higher possibility for a $16920 breakout. Bollinger band indicator: the recent recovery has pushed the coin price above the indicator’s midline, indicating bullish sentiment among the coin traders. However, the upper band of the indicator resides near $16920, increasing the resistance power if the level. Bitcoin Price Intraday Levels
Spot rate: $16855
Trend: Bullish
Volatility: Medium
Resistance levels- $16930 and $17360
Support levels- $16330 and $15600
