The crypto market saw another bearish day as Bitcoin struggled to break through the key resistance level above $70,000. Despite multiple failed attempts, there is a hidden bullish divergence that could lead to a rally above the bearish level in the near future.
After a period of consolidation, Bitcoin is now at a critical juncture where increased selling pressure could impact its performance. While currently stuck in a descending parallel channel, the overall trend remains bullish. However, the short-term bearish pressure may push the price back below $65,000 in the coming days.
Looking ahead, Bitcoin is approaching the apex of a bull flag pattern, which could trigger a significant surge once a breakout occurs. However, a minor pullback is expected in the short term as the upper resistance level remains unbreached. The price may test the ascending trend line, a strong support level, before resuming its upward trajectory.
Despite a decrease in buying volume indicated by the MACD, the bullish momentum is supported by the Ichimoku cloud, suggesting that the correction is temporary. Bitcoin is likely to sustain its upward momentum and surpass its all-time high after a brief consolidation period.
