Bitcoin (BTC) At $29,000, How Long Will The Consolidation Continue?

Bitcoin has remained flat for the past 24 hours, however, altcoins have fallen on their charts. Over the past week, the royal coin has continued to record sideways price movements on the charts. Since November 2021, the price of Bitcoin has been constantly moving in a downtrend.

On the longer time frame, Bitcoin continues to show signs of an upcoming downtrend. On a relatively shorter time scale, a royal coin might signal a price reversal.

In the past 24 hours, BTC has not made any gains. Last week it lost about 2% as the coin was mostly consolidating. Currently, BTC is located between $28,000 and $29,000 with these two levels serving as a critical demand area for the coin.

It appears that the buyers have given up the initiative to lead the price action and with the sellers staying strong, BTC may be eyeing the $20,000 price level.

Bitcoin Price Analysis: 1 Day Chart

Bitcoin is priced at $29,000 on the intraday chart | Source: BTCUSD on TradingView

The price of BTC was at $29,100 at the time of writing. The currency has formed a descending channel since November 2021 which highlights an extended bearish phase. The coin touched $69,000 in November, which is the coin’s all-time high.

BTC price is currently trading sideways between $29,000 and $28,000. A dip below that could push the coin’s price as low as $19,000. The upper resistance of the coin stood at $30,000, and to invalidate the bearish thesis, BTC should trade above $31,000.

Market strength and broader buyers will be required in order for BTC to move north on its chart.

Technical Analysis

Bitcoin registered a surge in buying power on the 4-hour chart | Source: BTCUSD on TradingView

The short-term time frame for Bitcoin looked bullish and indicated a price reversal on the charts. The coin has formed a descending wedge pattern on the chart (yellow).

The falling wedge pattern is associated with a trend reversal and this can be considered bullish for BTC. Usually after a period of consolidation, explosive price moves are often due.

On the RSI, the index rose and reached the 50 level, which means that buyers are back in the market. This indicates positivity in the market.

Bitcoin price was still below the 20-SMA which means that sellers are still driving the price momentum. An increase in buying power could push BTC above the 20-SMA line.

Related reading | Bearish Indicator: Is Bitcoin Heading Towards Its Ninth Weekly Close In Red?

Bitcoin is blinking a buy signal on the 4-hour chart | Source: BTCUSD on TradingView

The technical outlook on the 4 hour chart is all indicating a price reversal. The wonderful oscillator determines the price momentum in the market. AO is flashing green histograms which also correlates with a buy signal which reconfirms the RSI readings.

Bollinger Bands display the price fluctuations in the market, and if the bands are narrow and limited a period of price volatility can be expected. This could mean that during the upcoming trading sessions, BTC may aim to rise above the immediate resistance level provided that the broader market and buyers provide support.

Related reading | Ethereum is slipping, what are the next vital trading levels for the coin?

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