Bitcoin (BTC) Stands Strong: Defies Crypto Dip

With the vast majority of altcoins having fallen, and with most still in the red on Thursday, Bitcoin (BTC) is continuing to stand strong, with the bulls managing to maintain a similar price for going on two weeks now.

Crypto market pullback

The crypto market has been suffering a pullback this week with many altcoins down 10%, and in some cases, more than 20%. As this dip has been taking place, Bitcoin (BTC) has fluctuated, never more than 1.5% to 2% above and below $118,000. 

With Bitcoin holding firm, and momentum indicators resetting, $BTC could fly out of the blocks once the market begins to turn back up again. 

$BTC continues to track sideways

Source: TradingView

The short-term time frame for the $BTC price shows that there is some difficulty deciding the pattern. Either the pattern is a triangle, revealed by the firm black lines, and the price is sliding down the upper trendline, or the pattern is enlarging and becoming a bigger triangle, as described by the lighter trendline. 

Whichever way one looks at it, it seems like the bulls are happy to keep the price tracking sideways. The longer this sideways price action continues, the bigger can be the next potential surge to the upside. 

The Stochastic RSI (momentum indicator) has its indicators heading back down again. This is also the case with the 8-hour, 12-hour, and now even the daily. This provides the possibility of more downside into Friday and possibly the weekend. But a reset is coming.

New wave of upside price momentum is coming

Source: TradingView

The daily chart illustrates how the $BTC price is keeping above what is becoming good support structure between $118,000 down to $117,000. If the pattern is a triangle, it would appear that the price has broken out, and has confirmed, going all the way back to the bottom of the triangle to do so. Therefore, a rally could take place from here, but given that the market is still bearish, a bit more sideways movement is probably the order of the day.

At the bottom of the chart, the Stochastic RSI indicators for the daily time frame are approaching the last stretch to the bottom. Once they get there and turn back around, this could signal a new wave of upside price momentum.

Longer term indicators remain bullish

Source: TradingView

The 2-week chart offers nothing but bullishness. Three indicators are all signalling the same thing. Firstly, the Stochastic RSI on this time frame has its indicators heading into the maximum upside price momentum zone. The RSI has its indicator just clearing the down trend line. While the MACD (momentum and trend direction) has its indicator (blue) above the signal line (orange), as the green histogram bars get bigger.

To sum up, what these charts are telling us is that we are possibly coming to the end of a short-term correctional phase. On the longer term chart, the bull market is very much alive, and the trend is still undoubtedly up.

Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.