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Crypto YouTuber Says Bitcoin Is in a Strong Horizontal Channel

Published 04/04/2023, 14:11
Updated 04/04/2023, 14:15
© Reuters Crypto YouTuber Says Bitcoin Is in a Strong Horizontal Channel

  • Crypto YouTuber Daan de Rover analyzed Bitcoin’s price across multiple timeframes.
  • Bitcoin is consolidating in a pronounced horizontal channel in the 4-hour timeframe.
  • A confirmed breakout on any side of the horizontal channel would determine Bitcoin’s new trend.

YouTube crypto analyst Daan de Rover, under the pseudonym of Crypto Rover, has provided an analysis of the price development possibilities for Bitcoin. Daan analyzed Bitcoin’s price action for various support and resistance levels across multiple timeframes.

Using the 4-hour timeframe, Daan revealed that Bitcoin consolidated sideways in a pronounced horizontal channel. The channel is bordered by significant support and resistance on both sides. As long as the Bitcoin price remains within this range, there is no clear indication of its future price movement.

The Bitcoin enthusiast narrowed it to the 1-hour timeframe to show that Bitcoin is already developing a downtrend, proven by a rejection at a descending trendline connecting successive lower highs. He further confirmed the downtrend on the lower timeframe, corresponding with lower lows. He said that a continuation of the rally experienced earlier in the year can only be confirmed with a break above the descending trendline.

Back to the 4-hour timeframe, Daan noted the development of a new consolidation phase consisting of lower highs and higher lows. He considered the combination across the timeframes and the various phases of price development to conclude it was time to wait for a significant breakout before confirming a new trend.

Daan emphasized that the most significant chart formation remains the horizontal channel in the 4-hour timeframe. All the other chart formations could provide a short-term direction for Bitcoin price. However, a confirmed breakout on any side of the horizontal channel would lead to a significant price shift that could affect Bitcoin’s value for a longer period.

Notably, using the daily timeframe, Daan explained that the bullish momentum appears to be running out. He predicts there could be a pronounced pullback in the price of Bitcoin ahead of another significant rally.

Disclaimer: The views and opinions, as well as all the information shared in this price prediction, are published in good faith. Readers must do their research and due diligence. Any action taken by the reader is strictly at their own risk. Coin Edition and its affiliates will not be held liable for any direct or indirect damage or loss.

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