Bitcoin is currently in a consolidation phase with prices hovering around the $9,000 mark. This is after a strong rally in April that saw prices climb to over $13,000. So, what does this consolidation mean for Bitcoin and the cryptocurrency market?
Well, for one, it shows that the market is still very much in a bullish mood despite the recent pullback. This is because prices have not fallen below key support levels such as $8,800 and $9,200.
Moreover, the daily chart is still looking quite bullish with prices remaining above the 20-day moving average.
What’s more, the RSI indicator is also showing signs of further UPSide as it remains in bullish territory. Thus, it seems like Bitcoin could soon resume its uptrend and potentially move towards the $10,000 mark once again.
Of course, consolidation periods can last for a while and there’s no guarantee that prices will move higher from here. However, the overall market sentiment remains positive and there appears to be good support at key levels, which suggests that an UPSide move is more likely than a downside one.
So, in conclusion, it seems that Bitcoin is currently in consolidation but this could just be a pause before the next leg up.