After the successful start of the current trading week and breakthrough of a new all-time high, bitcoin slightly decreased in price. In addition to the prolonged rally, BTC dropped as traders began to lock in profits after BTC reached ATH. However, despite the decline, investors continue to hold BTC at the current high levels, which hints at the continuation of the rally. At the same time, such a long-term rally without a correction seems dangerous.
It is highly likely that the price will continue to adjust in the near future. BTC has been rising for quite a long time, which may negatively affect the long-term uptrend. In addition, bitcoin has already passed one correction section, rising from $60.2k. On the one hand, it paved the way for a new record high. On the other hand, the coin failed to consolidate in the range of $53k-$58k, which overshadowed the long-term upward outlook. However, the digital asset began rapid growth after the rebound amid growing US stock indices. The Dow Jones index reached a historic high, rising by 0.56%, and the NASDAQ Composite advanced by 0.20%. At the same time, bitcoin reached a new all-time high. The correctional phase looming in the US stock markets may indicate an early start of a correction in the crypto market. The first key support level may be around $64.7k and $60.2k. If so, the price may face the resistance area of $56.7k and $53.4k.
Notably, if investors continue to lock in profits, a correction may start earlier than expected. However, as of 13:00, traders buy BTC without any hesitation after the sale of coins by long-term holders. At the same time, new coins appeared less than a day ago. It may indicate that the peak of sales is still ahead. It may coincide with the correction of the digital currency. Apart from that, Glassnode experts are confident that the current increase in the Take Profit orders is a temporary factor trigged by long-term holders. In addition, a decline in the volume of cryptocurrencies on exchanges may also indicate the continuation of the accumulation period and the unwillingness of investors to sell BTC at such an early stage. This pattern confirms a long-term bullish outlook. However, it will be possible to make a more precise forecast after bitcoin begins to adjust, reaching the bottom. If traders do not rush to get rid of BTC, it may approach new highs quite soon.
On the 4H chart, bulls prevented the completion of the head and shoulders pattern, so BTC did not go down. They are trying to hold the local support level of $66,050 and push the quotes higher. As of 13:00, the coin is trading within a narrow range of $66k-$67k. If it breaks above this range, it may either approach new highs or begin a correction. Technical indicators are flat, which indicates a period of consolidation. Yet, bears look more strong in the current section. In addition, the MACD indicator formed a bearish intersection. It indicates a further decline in the price and the weakening of the medium-term upward momentum.
On the 1H chart, BTC began to grow again. Taking into account the formation of three green candlesticks, the price will soon go down or enter the consolidation stage. Yet, technical indicators signal an increase in purchases and bullish momentum. The MACD has been forming a bullish intersection but is in the red zone below the zero mark. At the same time, the stochastic and the RSI indicators signal a rise in purchases and the strengthening of the short-term upward momentum. However, if it does not break above $67.5k, it is too early to talk about another rally to new highs. As of 13:00, the price can go in any direction. Therefore, it is recommended to take a wait and see approach. The price is likely to move along the oscillation channel and break through the compression line. After that, it is likely to pick up a trajectory depending on the main trend. As of 13:15, BTC is likely to break above the indicated level taking into account technical indicators and the movements on the charts.
