July 23, 2024
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Bitcoin News

Bitcoin Forms Bullish Pattern, Signals Potential Reversal in Price Trend

Bitcoin (BTC) shows promising signs of a bullish trend, forming three-white soldiers pattern on the price chart. This pattern, characterized by three consecutive bullish candlesticks, indicates a potential reversal from a downtrend to an uptrend. Furthermore, BTC has successfully crossed above a downward trendline at $26,400, further strengthening its bullish case.

Supporting the positive outlook, the relative strength index (RSI) and moving average convergence divergence (MACD) indicators are both in the buying zone. This suggests that Bitcoin’s price may continue to rise, attracting the attention of traders and investors eagerly anticipating the next target for BTC.

At the time of writing, Bitcoin is trading at $26,921, marking a nearly 2% increase over the past 24 hours. It retains its top rank on CoinMarketCap with a trading volume of $13.2 billion and a live market capitalization of $522.4 billion. With 19,407,018 BTC coins in circulation out of a maximum supply of 21,000,000 BTC coins, Bitcoin continues to hold its dominance in the cryptocurrency market.

From a technical perspective, the sentiment has shifted from bearish to bullish as Bitcoin bounced off the major support level at $24,750. In the four-hour timeframe, the BTC/USD pair has formed a bullish pattern known as “Three White Soldiers,” indicating a continuation of the upward trend. The breach of the previous resistance level of around $36,150 further reinforces this bullish sentiment.

Key support levels include the 50-day exponential moving average of around $26,300, with immediate resistance at $27,000. A break above this level could propel Bitcoin’s price toward the following resistance levels at $27,400 or $27,700. On the downside, support can be found at around $26,600, followed by a stronger support level at $26,200.

Traders should watch the pivotal $37,000 level, as it may impact Bitcoin’s daily price movements. Overall, Bitcoin’s bullish pattern and positive technical indicators suggest a potential upward trajectory for the leading cryptocurrency.