(Akash Girimath – FXStreet)
– Bitcoin price is continuing to rise inside an ascending parallel channel.
– Investors can expect this move to push BTC to $20,770, where it will hit a confluence of the horizontal resistance level and a declining trend line.
– A breakdown of the $19,000 level will invalidate the bullish outlook and could crash the big crypto to $17,593.
Bitcoin price shows a slight increase in momentum that has initiated a consolidation in the form of an ascending parallel channel, which can be seen steadily rising on the four-hour price chart. The recent retest of the lower trend line of this pattern has caused BTC to bounce and continue heading higher.
Bitcoin price is not out of the woods yet
Bitcoin price began forming the ascending channel on September 19, and whilst the setup has a bearish bias, triggered by the breakdown of the lower trend line, Bitcoin price is currently trending higher and shows no signs of slowing down. It is unlikely to slow down until it reaches the $20,737 hurdle, which is at the confluence of a horizontal resistance level and a declining trend line. At that point, it will be at a make-or-break moment in its price evolution.
Investors need to be cautious as BTC is not out of the woods yet. The ongoing rally will flip bullish if Bitcoin price manages to flip the $20,737 hurdle into a support floor. Until this development occurs, however, market participants should expect a breakdown from the ascending parallel channel.
Such a breakdown would forecast Bitcoin price revisiting the range low at $17,593. A sweep of this barrier would be a good place for buyers to step in and kick-start a run-up.
While things are looking cautiously optimistic, Bitcoin price could flip the narrative by overcoming the $20,737 hurdle. A daily candlestick close above this barrier will invalidate the bearish outlook and potentially kick-start an 13% rally to retest the 200-week Simple Moving Average (SMA) at $23,473.