By CryptoTargets – For over a week now, the Bitcoin (BTC) rate has been moving in a consolidation zone. Does this mean that Bitcoin will soon shoot out of this? You can read about it in this brand new Update.
Bitcoin (BTC) 2-hour chart
In the first picture below, we have a clear view of the consolidation zone. In the second grey box (zone) you can see that Bitcoin is holding up between $10,900 and $10,600. In the consolidation zone before that, it was between $10,750 and $11,100.
Usually, when Bitcoin breaks on one of the sides of a consolidation box, it continues its path in that direction. We also saw this in the period between $10,750 and $11,100. Bitcoin broke out at the bottom here and fell $10,140.
An indication of which can Bitcoin will break out can be found in the intersections of the Moving Average lines (white arrows).
At the last white arrow we see an intersection which indicates that we may be descending further and therefore break out at the bottom of the box.
Bitcoin 4 hour chart (part 1)
On the longer timeframe we also get a clear picture of the current decline. What we see with the white arrows is that it looks like the course is going to make a lower high for the fourth time.
Should Bitcoin now break out at the bottom of the box, this could result in a drop to key level $10,000.
If we duplicate the box twice and fall below each other, then we see that this also exactly amounts to key level $10,000.
When Bitcoin falls out of a box like this, we often see that the price falls once or twice the width of the consolidation period out of that box.
Bitcoin 4-hour chart (part 2)
So, as it seems now, after confirmation of breaking under the box, Bitcoin will drop further to initially key level $10,000.
Should Bitcoin rise at the top of the box? Then we want a higher high as shown by the green arrows.
In this case, Bitcoin will still need to rise 4.5% to make a high over the $11,200. Should this happen, we can expect a rise to the top key level at $12,000.
Going down to $10,000?
When Bitcoin goes down at the bottom of the box, we can expect a drop to $10,000.
Will Bitcoin rise at the top of the box? Then we want to see a higher high over $11,200 before the price can rise further to $12,000.
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