Bitcoin Bulls Show Passiveness as Price Hovers Around $103,000
After a significant breakout, the Bitcoin bulls seem to be taking a breather with the price lingering around the $103,000 mark. This consolidation phase indicates the start of a potential accumulation period. The big question now is whether this phase will be short-lived or if it will persist for an extended period. And if it does end, will the price experience a breakout or face a rejection?
Consolidation Above $100K Signals Bullish Momentum
The fact that Bitcoin is consolidating above the $100,000 level is a strong bullish signal that suggests the possibility of reaching new all-time highs. Historically, Bitcoin tends to consolidate before embarking on a major bullish trend, so the current consolidation phase could be a precursor to a significant upward movement. However, it’s worth noting that the technical indicators are approaching levels that have triggered corrections in previous cycles, raising concerns about a potential downturn if the price dips below a certain threshold.
Approaching All-Time Highs with Caution
Bitcoin is on the verge of testing its all-time highs, but caution is warranted as the technical indicators point to a potential correction phase. The weekly Relative Strength Index (RSI) has entered overbought territory for the first time since the November breakout, hinting at a possible pullback. However, it’s worth noting that the price has held within a bullish range while the RSI trended downwards in the past, suggesting that an immediate reversal may not be imminent.
While a new all-time high for Bitcoin is on the horizon, it may not surpass the $112,000 to $115,000 range. Additionally, the On-Balance Volume (OBV) is showing a bearish divergence after encountering resistance. If the OBV fails to break above these levels, it could hinder the rally’s progress and lead to a prolonged period of horizontal consolidation.