Following a notable rise at the end of January, Bitcoin (BTC) price has shown steady movement this week. Daily candles for short and long terms can reflect the uncertainty and initiation from bulls and bears.
Bitcoin’s Growth Potential Indicators
However, when looking at a shorter time frame, this consolidation appears to be the formation of a bullish flag pattern. According to experts, the breakout of this flag pattern could free the Bitcoin price from its current uncertainty. The cryptocurrency’s price above the 20 and 50-day EMAs provides additional support to market buyers. Moreover, Bitcoin’s intraday trading volume of 13.9 billion dollars indicates a potential increase of 11.1%.
Historical Data Insights for BTC
The mentioned situation could lead to speculation that Bitcoin may not fall back to or below $31,000. Additionally, the analyst notes that the 200WMA is on an upward trajectory, which could signify that Bitcoin’s value is ready for sustainable growth. After the initial sell-off following the ETF decision, Bitcoin demonstrated a strong recovery from $38,500, standing back on its feet. This recovery increased the cryptocurrency by about 14%, reaching $43,900. However, the emergence of general supply pressure has since directed the price into a horizontal movement, indicating a consolidation phase after the rise.
The mentioned phase is characterized on the daily chart by a flag formation with converging trend lines. Breaking the resistance of the flag formation could mean the continuation of the recovery rally, creating opportunities for new market entries. If this breakout occurs, the trajectory of the Bitcoin price could surpass the $45,000 threshold, targeting a goal of $48,000 thereafter.
