BTC/USDT 1-hour chart (Source: TradingView)
As a continuation of the previous day’s bullish trend in the crypto market, the BTC bulls have accelerated their rally in the last few hours. The bulls are driving the price up, and BTC is now hovering around $21,156.88 up 2.08% in 24 hours.
BTC’s RSI on the 1-hour chart of BTC/USDT is currently 62.20. Sooner it may reach an RSI value above 70, indicating that the king of cryptocurrencies is overbought and the bears will soon gain power, forcing the price into a downtrend. If the price is unable to close above the $22,000 level, this could trigger another drop in the near future.
The 1-hour chart above indicates that after rallying from the order block between $18,848.54 and $18,778.32, Bitcoin rallied to the $21,000 price level and is now forming higher highs and lows within a rising wedge. . A rising wedge is believed to indicate an imminent breakout to the downside. Like other wedges, the pattern starts wide towards the bottom and contracts as price rises and the trading range narrows. If Bitcoin follows the nature of the rising wedge, we can expect the price to return to its previous order block soon.
However, there is also another possibility that if more traders bid for higher prices and accumulate more Bitcoins, the upper trend line of the rising wedge may be broken. In that case, the Bitcoin price could trade above $22,500.
In general, the Bollinger Bands are now contracting, which means that the market is in a low liquidity environment. To determine if Bitcoin is now back in a bull market, risk-averse traders may want to keep an eye on increased trading volume at higher prices.