The leading cryptocurrency today fell again to $69,000 but is still managing to hold the critical price area positively. Investors have lost their appetite for risk in altcoins due to the impact of fluctuations in BTC prices. However, this period of shallow volatility must break at some point. April could be a good opportunity.
Bitcoin Technical Analysis
The daily chart shows that Bitcoin is moving for a bull flag formation. This pattern is seen after a strong uptrend and forms while the price fluctuates within a symmetrical triangle. It is a continuation pattern, clearly reflecting Bitcoin‘s potential for further increases. The formation has three stages: pole formation, consolidation, and breakout.
As of March 29, the Bitcoin price has entered the second stage, consolidation, which is something that excites traders as April approaches. Volumes are weakening, and several FUD factors have balanced risk appetite. This is another aspect of consolidation.
Bull Formation Target
While technical indicators are not crystal balls predicting the future, their historical success rates tell us they are worth considering. The price is within the formation, and according to the rule, it should reach the target by or in May.
The upcoming halving in April could be a good catalyst for the upward target. This corresponds to the upper trend line at $97,600. However, weekly chart RSI readings in the overbought zone indicate the potential for the price to shift from consolidation to a decline.
If the concerns on the weekly chart materialize, we may see a different scenario for the BTC price during the halving period. There could be more compression between $69,300 and $67,850. However, the price continues to target $100,000 as long as it keeps closing above $69,300.
Developments in the coming days, such as the status of entries through the ETF channel, will affect investor sentiment and help shape the price direction. Steps taken with exchanges like KuCoin and Coinbase currently stand as two major barriers to an extreme bullish phase. Moreover, the March inflation data expected in April could shape the 2024 interest rate cut path and trigger the breakout.
