Bitcoin crucial technical pattern could soon bolster the price to $64,000

April 7th, 2021

Bitcoin crucial technical pattern could soon bolster the price to $64,000 Bitcoin has for over a week now been stuck under $60,000. However, the downside has also been protected by a critical technical pattern molded on the four-hour chart. Additionally, the Simple Moving Average (SMA) has significantly contributed to making the required support area robust enough.

At the time of writing, Bitcoin trades at $57,835, shortly after losing the support at 58,000. The flagship cryptocurrency seeks support refuge at the rectangle pattern. This classical technical formation brings to light significant resistance and support areas. Traders can buy at the support and perhaps sell at the resistance or wait for a breakout above the pattern.

Note that most technical analysts consider the rectangle formation a bullish continuation. However, there are instances when the pattern results in a correction. Either way, rectangles illustrate a tug of war between the bulls and the bears and may lead to accumulation of distribution, resulting in a technical breakout or breakdown.

As for Bitcoin, if support at the rectangle’s lower limit holds, we will likely see an uptick in the price. Trading past the upper edge would pave the way for a massive continuation pattern above $60,000 and toward $64,000.

BTC/USD four-hour pattern

BTC/USD price chart
BTC/USD price chart by Tradingview

It is worth mentioning that the sideways trading may dominate based on the Moving Average Convergence Divergence (MACD) indicator’s leveling motion at the midline. Support at the 100 SMA and, by extension, the 200 SMA currently at $56,000 must hold; otherwise, Bitcoin may freefall to $50,000.

Bitcoin intraday levels

Spot rate: $57,835

Trend: Bearish

Volatility: Expanding

Support: $57,000, and $56,000

Resistance: $58,000 and $60,000

The original post Bitcoin Price Prediction: BTC crucial technical pattern could soon bolster the price to $64,000.