Bitcoin (BTC) Price Target Surpasses Resistance Level

Since Bitcoin (BTC) hit a six-month low during the market downturn on August 5, its demand has moderately increased, forming an ascending triangle pattern.

Currently, the leading cryptocurrency is trading at $60,940, rebounding 13% from the August 5 low of $54,018.

Bitcoin Aims to Break Resistance Level

An ascending triangle is a bullish candlestick chart pattern that forms when an asset’s price moves between a flat horizontal resistance line and an upward-sloping support line. This pattern indicates increasing buying pressure while selling activity remains concentrated at a specific price level. As demand grows, the price gradually approaches the resistance level.

For Bitcoin, the key resistance level in this pattern is $61,845. Currently trading at $60,940, BTC is attempting to break through this resistance, suggesting that buyers may soon overcome selling pressure, potentially driving the price higher.

The Chaikin Money Flow (CMF) indicator supports this view. The CMF reading is 0.01, rising above the zero line for the first time since August 13, reflecting increased capital inflows and strengthening bullish momentum.

Bitcoin Price Analysis. Source: TradingView

This indicator measures the inflow and outflow of capital for an asset. When its value is above zero, it indicates liquidity entering the market, with a significant increase in buying activity. Traders often see this as a precursor to price increases.

Additionally, since the start of the ascending triangle, BTC’s On-Balance Volume (OBV) has been steadily rising. This indicator measures the buying and selling pressure in the asset market.

When it increases, it indicates that buying pressure exceeds selling activity, suggesting a bullish recovery.

BTC Price Prediction: Futures Traders Take a Different Path

Despite the growing bullish sentiment in the spot market, BTC derivatives market traders have adopted a bearish strategy. This is evident from the token’s buy-sell ratio (evaluated using a 14-day simple moving average), which has fallen below 1. As of this writing, CryptoQuant data shows the indicator value at 0.99.

This indicator measures the ratio between buy and sell volumes in the asset’s futures market. A value greater than 1 indicates more buying than selling, while a value less than 1 indicates more selling than buying.

A buy-sell ratio below one is a bearish signal, as it suggests that perpetual futures market traders are primarily selling the asset rather than buying more.

If traders continue to sell, Bitcoin’s price could drop to $58,464, giving back some of its recent gains. On the other hand, if their strategy shifts to accumulating more BTC, it could break through the ascending triangle’s resistance level, potentially pushing the price up to $64,321.

Disclaimer: This price analysis article serves as reference only and should not be construed as financial or investment advice. Before making any financial decisions, please conduct your own research and consult professionals.

Sentiment: Positive