Bitcoin investors are eagerly awaiting the leading cryptocurrency’s next move, as it currently experiences a period of low-volatility consolidation. Veteran trader and crypto analyst Tone Vays believes that Bitcoin’s current phase may be “boring,” but it’s showing signs that indicate an upcoming breakout rally to the upside.
Key Moving Averages on the Weekly Chart
Vays points to key moving averages (MAs) on the weekly chart, which are now acting as support for Bitcoin. He notes that the 50-week MA continues to drop while the 200-week MA is slowly rising, indicating that the cryptocurrency is likely to break out of its consolidation phase within two weeks.
A golden cross on the weekly chart, where the 20-week moving average crosses above the 50-week moving average, could indicate that Bitcoin is in an uptrend. Vays believes that BTC’s Lucid SARs, a directional trend indicator, also looks good and reinforces his bullish outlook.
Bitcoin’s consolidation phase since March 17th has taken the form of an ascending triangle, with higher lows and equal highs connected via trend lines. This technical formation forecasts a 7.6% upswing, obtained by adding the distance between the first swing high and swing low to the breakout point.
Possible Scenarios for the Bitcoin Price
There are two possible scenarios for the Bitcoin price spike, according to the author’s analysis. The first scenario is if BTC flips the $28,520 hurdle into a support floor, triggering a move to $30,707.
The second scenario is if Bitcoin’s price sweeps the triangle’s hypotenuse at $27,660 to collect the sell-stop liquidity. After such a liquidity run, the king coin is likely to head higher and flip the $28,520 resistance level. BTC was worth $28,343 at the time of writing this article.
Which of the two possible scenarios do you believe is more likely to occur?