Under the alias Crypto Rover on YouTube, the crypto analyst Daan de Rover has provided an analysis of the possibility for Bitcoin‘s value to increase. In order to identify different levels of support and resistance over a variety of timeframes, Daan examined the price movement of Bitcoin.
Using a period of four hours, Daan showed that Bitcoin consolidated in a clear horizontal channel. Both crucial assistance and resistance surround the channel on either side. There isn’t a definite sign of the future value movement of Bitcoin as long as its price remains within this range.
The Bitcoin enthusiast focused on the 1-hour timeframe to demonstrate how Bitcoin is already moving in a downward direction, which was supported by a rejection at the descending trendline connecting consecutive downward highs.
He also verified the downward trend on the lower timeframe, which corresponded to lower lows. He claimed that a break above the descending trendline is necessary to prove a continuation of the rally that was experienced earlier this year.
Returning to the 4-hour timeframe, Daan noted the occurrence of a fresh consolidation segment with lower highs and higher lows. He considered the mixture over the various timeframes and stages of value growth and came to the conclusion that it was necessary to wait for a significant breakout before confirming a new development.
Daan emphasized that the horizontal channel within the 4-hour period continues to be the most significant chart formation. All of the opposing chart configurations could indicate a short-term direction for Bitcoin value.
However, a verified breakout on any side of the horizontal channel would cause a significant shift in value that could have an impact on the price of Bitcoin for a considerable amount of time.
Daan pointed out that the bullish momentum appears to be working out using the daily period. He forecasts that before another significant rally, there may be a noticeable decline in the price of Bitcoin.