Bitcoin’s price has been trading between over the last few days. This narrow price range suggests a period of uncertainty and pressure building up before a potential breakout or breakdown. Traders refer to this as a “compression” pattern.
Here’s what the technical indicators say:
Bitcoin is still above its long-term moving averages, which is a positive sign.
However, (Moving Average Convergence Divergence), which shows market momentum, is starting to lose strength. This could mean the buying power is slowing down.
The RSI (Relative Strength Index), which shows whether an asset is overbought or oversold, is near high levels. This indicates Bitcoin may need a rest before moving higher.
The chart also shows that Bitcoin is stuck between a (resistance) and an upward one (support). This forms a triangle pattern, often leading to a strong price movement soon.
