Bitcoin (BTC) is trading downward i.72% over the concluding 24 hours and 1.five% for today's session.  Looking at operation relative to its peers and in contrast, Ether (ETH) and EOS take also posted losses over the last 24 hours but remain somewhat more than resilient. As a result, Bitcoin dominance is down 63.seven%.

Crypto market daily performance

Crypto market daily functioning. Source: Coin360

1-calendar week Bitcoin chart

BTCUSD 1-week chart

BTCUSD 1-week nautical chart. Source: Tradingview

Bitcoin closed concluding calendar week with a fourth sequent green candle, which was also the fourth consecutive time that there has been a solid rejection of the 100-week moving average which lies a little over $vii,000.

Volume saw a small decline last week but remains high relative to average. Price increasing as volume decreases is generally bearish, only given the context of relatively high volume, information technology could be interpreted as misleading in this instance.

The MACD is printing higher lows on the histogram, which also shows departure building every bit prices impress lower lows, which is largely due to the pace of recovery from the $iii.8k bottom which was briefly visited. Despite this, the MACD is yet trending below zero meaning that the 12 and 26 EMAs underpinning the indicator remain crossed bearish, indicating that the trend is down despite showing signs of weakening.

Looking overhead, the 20-calendar week MA lies at $7,800 and usually plays a pivotal office in determining the overall bullish or bearish nature of the marketplace. Reclaiming this line in the sand would be significant for the bulls.

1-twenty-four hour period Bitcoin chart

BTCUSD 1-day chart

BTCUSD 1-day nautical chart. Source: Tradingview

Looking more closely at the activeness so far this calendar week, we can conspicuously see that Bitcoin is being held downward past the fifty-mean solar day moving average and the point of control (the price at which almost volume has been traded).

Bitcoin now sits on previous resistance that's now turned support with $6,700 being strongly dedicated over the weekend and most of the price action taking place merely below $7,000.

The daily candles in this area are showing modest bodies with wicks on either side showing indecision suggesting a volatile move could follow once the market decides on a management. Daily volume has also noticeably decreased every bit would be expected in a period of consolidation.

The daily MACD shows Bitcoin losing momentum with the histogram dropping off and threatening a bearish cross.

Should Bitcoin suspension down, the visible profile visible range, or VPVR, suggests that at that place would be some buying interest effectually the $6,250 surface area. Resistance to the upside would be the 100 and 200 DMAs, which are declining from effectually $8K — the region of the 20-week moving boilerplate.

Bitcoin volatility 1-day chart

Bitcoin volatility ane-day chart. Source: Tradingview

The 1-day volatility chart shows that since recording highs not seen since Dec 2022, it has rapidly declined and paused to consolidate before the market place decides which direction it wants the toll to move.

Correlation to traditional markets shows that Bitcoin's cost remains correlated to both Gilded and the S&P 500. This suggests that in the brusk term Bitcoin is likely to continue to exist at the mercy of the legacy markets, which accept seen a positive motion over the final couple of weeks.

Bitcoin correlation coefficient

Bitcoin correlation coefficient. Source: Tradingview

4-hour Bitcoin nautical chart

Both the daily and weekly charts for Bitcoin prove that BTC/USD is at a decision bespeak with around a month remaining before the halving of the block advantage, which is ultimately meant to be a bullish event due to a halving in the market supply of Bitcoins being sold to market place.

Both a surly and bullish example tin can be made during the current period of consolidation/indecision.

Bearish case

BTCUSD 4-hour chart

BTCUSD 4-hr nautical chart. Source: Tradingview

Bitcoin is currently trading in an ascending wedge, which when coupled with declining book, is typically viewed every bit being surly.

The price action is very similar to that we saw earlier in Q1 of the year with an initial suspension outside of the wedge forming a diamond pattern and the correct shoulder of a head and shoulders pinnacle blueprint, which ultimately bankrupt downwards and met the technical downside target around $8,800.

Should a similar scenario play out, $6K would be expected to be retested and mayhap lower.

Bullish example

While Bitcoin is currently in a bearish posture with a head and shoulders top, we have seen a similar marketplace construction at the end of March in the ascent from the yearly lows.

A break above the right shoulder would not simply invalidate the pattern but would mean breaking out of the 50-day moving average, which is holding the cost down.

Should this occur, information technology would nearly likely go out the door open to test the moving averages discussed throughout and the lodge cake at $vii,800-$eight,100.

BTCUSD 4-hour chart

BTCUSD 4-60 minutes chart. Source: Tradingview

Looking frontwards

The menstruum of consolidation looks to be apace coming to an terminate, with Bitcoin being on the cusp of a motion towards $8K or back to retest $7K.

Due to the loftier correlation to the traditional markets and beingness in a generally volatile surround, Bitcoin could still come across an extended period of consolidation before the halving, with a clear invalidation being prices sustained above $7,200 in the near future.

Breaking the confluence of resistance at $8K will exist a tall social club for the bulls, however, without the traditional markets continuing to move to the upside as long as the loftier correlation remains.

The views and opinions expressed hither are solely those of the author and do not necessarily reflect the views of Cointelegraph. Every investment and trading motility involves chance. You should carry your own enquiry when making a decision.