Having risen strongly throughout most of 2023, bitcoin is still catching its breath as we work our way through Q1 of 2024. Bitcoin could break back down, but a continuation of the bull market is getting nearer.
Bitcoin took a breather
Bitcoin has come a long way. A 212% rise over the course of about a year is a pretty spectacular gain for any asset. Bitcoin needed to calm down and enter a period of sideways and downwards price action. This has been taking place since early December 2023, and two months later $BTC is getting nearer the time when it awakens from its slumber once again.
Source: Coingecko/Trading View
Short term price action bullish
Monday has witnessed a green day for $BTC. The price has currently wiped out Sunday’s loss, up just over 1% so far. In the very short 1-hour time frame, $BTC is trying to break out of a triangle, while battling resistance at the same time.
Something has to give
Breaking through, and confirming the breakout, would allow $BTC to rise to the major resistance at around $44,000.
Looking at the daily time frame, this zoomed-out view allows us to observe how price is being squeezed between the bullish trend line and the resistances. Something will have to give, and whichever direction the confirmed breakout takes, would likely be that of the next upward or downward move.
Bull market continuation
Be that as it may, $BTC is very much into its bull market. The halving is only a short way off in April, and the later stages of the bull market cycle could take place some time in the last half of 2025.
With this in mind, the current short term price action is very much just noise. There may be another pull back for $BTC over the next week, but by the end of that, the stochastic RSI momentum indicators for $BTC will have reset, probably including the weekly, and once these indicators start heading back up, $BTC could be looking at testing the local high at $49,000.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.