Bitcoin (BTC) At $29,000, How Will the Consolidation Continue?

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Bitcoin remained consolidated over the last 24 hours, even with other altcoins having dipped on their charts. Over the previous week, the king-coin continues to register lateral price movements even though the price of bitcoin has consistently moved on the downside since November 2021. If considered on the longer time frame, Bitcoin shows signs of upcoming bearishness. However, in a comparatively shorter time frame, bitcoin may be hinting at a price reversal.

Contrary to last week, where bitcoin lost about 2% as it was mostly consolidating, over the last 24 hours, BTC made no gains. Bitcoin is currently sandwiched between $28,000 and $29,000 as those two levels have been acting as the coin’s crucial demand zone. With buyers seeming to have given up on the initiative to lead a price action and sellers who kept selling, bitcoin might eventually drop to the $20,000 price level.

For BTC to regain its positive foothold, broader market strength and buyers will be needed. At the time of writing, bitcoin was priced at $29,100. Before this bearish trend, the coin reached an all-time high of $69,000 in November. A fall below this current bitcoin price may plunge the coin to as low as $19,000. Overhead resistance for the coin stood at $30,000, and for the bearish threats to be invalidated, BTC needs to trade above $31,000.

Bitcoin’s short-term time frame looked optimistic, pointing towards a price reversal as the coin formed a descending wedge pattern on its chart. A descending wedge pattern is related to a trend reversal, which can be considered bullish for BTC. Usually, after a period of consolidation, explosive price actions are expected.

Looking at the Relative Strength Index, the indicator climbed, reaching the 50-mark, meaning buyers are returning. Technical outlook on the four charts also suggest a price reversal. The awesome oscillator dictates the price in the market. AO flashed green histograms also confirmed the RSI readings. The Bollinger Band displays price volatility in the market, and if the bands are tight and constricted, a period of price volatility might be expected. This means that BTC might aim to rise above its immediate resistance level provided broader markets and buyers extend support.