Bitcoin price could be forming a massive consolidation pattern that spark a significant downtrend

Bitcoin price has failed to break out of the tight trading range that has been stuck for the past few weeks. Currently, the short-term trading range that Bitcoin has established is in the field of $ 9,000 to $ 10,000. The support and resistance at each of these levels are extremely strong.

bitcoin-price-could-be-forming-a-massive-consolidation-pattern1

BTC/USD 4 hours chart | Source: Tradingview

The Bitcoin price is blinking, forming a bearish distribution pattern

At press time, the Bitcoin price is trading slightly lower at the current price of $ 9,410. This is the price range that it was trading at the time after the recent drop to $ 8,900. Nevertheless, Bitcoin has formed lower lows in the past few weeks. First, it headed at $ 10,400, then $ 10,050, and now $ 9,600 seems to be its short-term high.

Therefore, soon, we should watch closely to see if Bitcoin will confirm the potential bearish distribution pattern it will form later this year. Looking at the chart below, we can see this grim possibility. This makes it clear that this model has striking similarities with past price history.

bitcoin-price-could-be-forming-a-massive-consolidation-pattern

Source: Capo Of Crypto Charts via TradingView

The boundaries on the chart also indicate that this pattern will only be confirmed if Bitcoin has a sustained decline below $ 8,600. Even so, Bitcoin buyers are likely to disable this strong technical weakness if they can push the BTC price higher in the days and weeks to come.

According to cryptocurrency analyst Chase_NL, the bearish distribution pattern may be invalidated if the bulls can push Bitcoin above $ 10,085. He noted that this would then open the ports to transfer to $ 11,500.

Bitcoin price still has much hope of increasing because of the following factors

Despite these excessive discount factors, Bitcoin can still be well-positioned to see some noticeable gains in the medium term. This advantage can be provided by two main factors: BTC’s ability to maintain its position above the 100 and 200-day moving averages and its robust trading volume.

For these factors in creating a strong uptrend, buyers must keep Bitcoin high above the next days and weeks.

According to Crypto analyst Michaël, the ability to maintain both the 100 and 200-day moving averages as well as Bitcoin forming a strong volume profile despite its lackluster price action as of late is extremely important.

For Bitcoin to rise higher soon and confirm this potential strength, there is a critical price area that must be protected. It is an area of ​​prices between $ 9,200 and $ 9,250 – a critical support area – and ardent defense of this could allow the uptrend to continue.

You can also check Bitcoin Price here.

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