- China-based cryptocurrencies surge as bitcoin consolidates.
- If volume picks up, BTC could break above $9,700.
- One of the most prominent analysts in the industry shares his views on the pioneer cryptocurrency for this week.
Following Chinese President Xi Jinping’s decision to embrace blockchain technology, many China-based cryptocurrencies have seen a significant spike in their market value. VeChain, for instance, has moved up a whopping 185% while NEO has skyrocketed nearly 100% since then.
Despite the high volatility seen across these altcoins, bitcoin has been lurking without much action. A renowned technical analyst in the crypto community believes that BTC is on the verge of a significant price movement.
Bitcoin is consolidating while VeChain and NEO are skyrocketing. | Source: TradingView
Volume is needed for BTC to rise
The low level of volatility seen in bitcoin over the last three weeks led the formation of a descending parallel channel on its 12-hour chart, which is composed of three parallel lines. Every time BTC drops to the lower line, it rebounds to the middle or the upper one. Conversely, when it surges to the upper line, it pulls back to the middle or the lower one.
Now that bitcoin is trading around the lower parallel line, an increase in volume could take BTC to move back to the upper one. And, if the buying pressure behind it is strong enough, bitcoin could break out of the descending parallel channel. This would allow it to resume its uptrend, considering that this technical pattern is part of a bull flag.
Investopedia defines a bull flag as a continuation pattern, which has been developing on bitcoin’s 12-hour chart since Oct.