The bitcoin (BTC) price at the time of writing is around $11,390. We look at the charts and discuss possible scenarios for the price.
Bitcoin consolidates after a sharp rise and now makes a diamond pattern. Do we rise further to $13,000?
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We can clearly see here that the course forms a diamond pattern. This is a phenomenon that often occurs after a large increase in a consolidation period.
Often the price breaks out of this pattern and follows its way up. Just before the high point this year at $114.50 we have seen the same pattern. Again after a rise of 23% the price formed this pattern from July 28 to August 4, after which it broke out of the pattern and rose again by 11%.
Should the price now also break out at the top we can expect a rise towards the next resistance at $12,000.
BTC daily chart
On the daily timeframe, we see that Bitcoin holds up nicely above the 0.236 level of the fibonacci indicator.
After a small rise back, Bitcoin still remains nicely above the middle core of this indicator. This middle core is often used as a trend line.
At first it is Bitcoin’s job to rise back to the resistance at $12000 after which it can rise back to the top of the indicator at $12370. This is equal to the highest point in 2020.
On the 4-hour chart we see another remarkable resistance. This is the sloping resistance from May 6 to August 1, August 26 and recently on October 13 (red line).
Bitcoin can get a fierce resistance here and descend back towards the underlying sloping support line at about $10,300.
Should Bitcoin encounter resistance here and thus fail to break out of the diamond pattern? Then we can drop back to $10,300 or even lower towards the horizontal support range at $9,000.
What will bitcoin do?
We have to wait and see what Bitcoin will do. The diamond pattern plays a major role in this and can determine whether we continue to rise or fall.
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