BTC/USDT 1-Hour Chart (Source: TradingView)
In continuation of the previous day’s bullish trend in the crypto market, BTC bulls have accelerated their rally in recent hours. The bulls are pulling the price up, and BTC is now hovering at $21,156.88 with a 24-hour increase of 2.08%.
The RSI of BTC in the 1-hour chart of BTC/USDT is currently 62.20. Sooner it can reach an RSI value above 70, indicating that the crypto king is overbought and the bears will soon gain power, forcing the price into a downtrend. If the price cannot close above the $22,000 level, this might trigger another drop in the near future.
The above 1-hour chart states that after rising up from the order block between $18848.54 and $18778.32, Bitcoin rose up to the $21,000 price level and now forming higher highs and higher lows inside a rising wedge. A rising wedge is believed to signal an imminent breakout to the downside. Like other wedges, the pattern begins wide towards the bottom and contracts as the price moves higher and the trading range narrows. If Bitcoin follows the nature of the rising wedge, we can expect a price dump back to its previous order block soon.
However, there is also another possibility that if more traders are betting on higher prices and accumulating more Bitcoins, the upper trendline of the rising wedge can be broken. In that case, Bitcoin price might trade above $22,500
Overall, the Bollinger Bands are now contracting to mean that the market is in a low liquidity environment. In order to determine whether Bitcoin is now back in a bull market, risk-averse traders may want to keep a watch out for rising trading volume at higher prices.