Over the past two weeks, the world’s largest cryptocurrency, Bitcoin (BTC), has entered a major consolidation and is struggling to break through $28,000. The good thing is that Bitcoin has also shown limited downside volatility.
Bitcoin on-chain setup shows it could be preparing for a strong show. Popular crypto analyst Ali Martinez points to the adjusted SOPR (aSOPR) for Bitcoin signaling upcoming upward momentum. In one of his recent tweets, Ali wrote:
“Other #Bitcoin Indicator points to explosive growth! Historically, aSORP (90d) below 1 signals a bear market and above 1 a bull market. In 2015, 2019 and 2020, this resulted in gains of 6,110%, 150% and 579%. aSORP recently moved above 1, suggesting that $BTC ready to go parabolic”.
Courtesy: Glassnode
According to our technical analysis, Bitcoin (BTC) price action is currently forming a pennant pattern. A possible breakout above this pattern could indicate the continuation of the bullish BTC price action.
Bitcoin’s next price levels are $40,000 and $46,000
Analysts are bullish on Bitcoin’s continued price action and expect much higher price levels from here as long as BTC continues to hold the $27,600 support. Popular crypto analyst Michael van de Poppe wrote: “Price action has remained flat and the longer we stay within this range, the stronger the momentum will be. Based on the fact that we’re coming from $15,000, I would expect that we’re going to see a strong continuation. For now, support holds at $27,600.” He further wrote:
“Bitcoin still acting into higher timeframe resistance at $28k-$30k. Powell’s rate-hike policy likely to come to an end -> ingredient for relief. If #Bitcoin Breaks of $28K-$30K, $40K and $46K are next + likely significant breakouts from altcoins on confidence.”
Aside from Bitcoin price action, some altcoins are also showing bullish price action. Last week, Dogecoin (DOGE) dominated much of the crypto market discussion as Twitter changed the logo to a Shiba Inu meme coin.
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