Bitcoin (BTC) is recovering all losses and trading above the $30,000 mark and above the 50-four-hour Simple Moving Average (SMA). A bullish technical formation has appeared on the four-hour chart, pointing to a significant move to the upside. The big crypto could rise toward the $33,000 supply zone.
Bitcoin Price Readies for a 7% Uptick
BTC price begins the second half of the year string as bulls aggressively defend the $30,000 support. The flagship cryptocurrency suffered the brunt of US crypto regulatory crackdown over the past month.
However, Bitcoin’s price is 10% over the last quarter, 12.9% over the last month and 1.09% over the past week. On the yearly time frame, BTC looks strong as it trades 60% higher over the last 12 months and 84% above the January 1 opening.
Looking ahead, a quiet week is expected in the traditional finance markers as Wall Street gears up for the Independence Day holiday with little expectations from the US macroeconomic data.
As such, BTC requires triggers from elsewhere to determine which direction the bellwether cryptocurrency may go next. The technical setup shows that Bitcoin could move to $32,000 or higher.
From the chart below, it can be seen that Bitcoin’s price action formed a symmetrical triangle on the four-hour chart, which has since metamorphosed into an ascending triangle. This is a highly bullish chart pattern that shows that Bitcoin is likely to shoot to the upside once a clear and decisive close is achieved above the triangle’s horizontal line.
At the time of writing, BTC was hovering around $30,650 and was fighting immediate resistance from the $31, resistance level. A daily candlestick above this level would see the price rise toward the resistance line of the governing chart pattern at $31.250.
Overcoming this barrier would see crypto breakout of the triangle, confirming a breakout to the upside. This could clear the path for a rise toward $32,000. Breaking this barrier would see Bitcoin rise to reach the technical target of the ascending triangle at $33.000. Such a move would represent a 7% ascent from the current price.
BTC/USD Daily Chart
Apart from the chart pattern, Bitcoin’s upside was supported by the position of the Relative Strength (RSI) in the positive region. The price strength at 54 suggested that the bulls were beginning to take control of BTC’s price.
The crypto also sat on strong support downward. These are areas defined by the 50 SMA at $30,488, triangle’s ascending support line at $30,200, the 100 SMA at $29,415 and the 200 SMA below $28,000.
These areas are buyer congestion zones that can provide the buying pressure required to propel Bitcoin higher.
On the other hand, a four-hour candlestick close below the 50-day SMA would mean the ability of the buyers to hold the world’s largest crypto by market capitalization at higher levels. The next move would be a drop below the triangle to $30,000.
A drop further would see BTC revisit each of the zones described above toward the $200 SMA at $27,883. This is where the crypto’s downside could be capped for th short term.
