The crypto space appears to be at a standstill again as the top cryptos are going dormant these days. The recent breakout above $32,200 was later canceled as the price again returned to the same zone. Currently, it looks like BTC price could consolidate within these levels. However, some signs are showing a significant increase in the waiting period which could push the price to the next level very soon.
Bitcoin (BTC) price is swinging inside an ascending triangle
The May 2022 market crash has driven bitcoin to a 10-month low. However, the asset managed to hold off quickly and has since taken a lot of effort to materialize a strong uptrend. However, the upper resistance remained limited above $32,000, above which the asset faced massive rejection every now and then. Hence forcing the price to maintain its trend within the ascending consolidation along the triangle.
The trading is very bullish within the ascending consolidation indicating that the asset may continue with the same consolidation for a few more weeks before a breakout. The rally is yet to reach the top of the triangle and hence a healthy consolidation may prevail by the end of June trading. Moreover, with a breakout, the price could reach $34,000 without rejection.
Bullish breakout above 200-day MA level
BTC price is showing signs of a bullish move in the near term as the asset recently broke the crucial 200-day moving average on the 4-hours time frame. The 200-MA levels are considered to be one of the important support levels and a retest of positions above these levels could ignite a significant bull rally further.
Previously, these levels were tested on April 11th, which eventually caused the BTC price to drop by around 36%. However, the current trend may diversify slightly as prices are consolidating in parallel, unlike last time when the decline had already started. On the other hand, the trading volume is in favor of the bulls which could soon fuel a strong uptrend.
The ‘Golden-Cross’ will happen any moment from now
A key reason for the short-term bitcoin rally is the formation of a ‘golden cross’ on the 4-hours chart. The 50-days and 200-days MA levels are on the verge of crossing each other, where the 50-days MA levels may diverge to the north. And so with the occurrence of this event, the prices are expected to rise by 10% to 12% soon.
The property fell victim to a death cross somewhere in mid-April and had lost about 10% of the value in a few days. And so the golden cross is expected to lift the asset above the longer accumulation phase. Therefore, with increased activity, bitcoin (BTC) price could be headed for a significant increase towards the target level of $34,000 at the earliest.