Bitcoin Rejected At Critical Resistance, This Is The Level To Watch Now: BTC Price Analysis
After reaching the critical $29-30K price zone, bitcoin’s bullish rally was rejected, and the price moved back into the $27-28K consolidation range.
In the next short-term, the $30K mark will likely act as the most important resistance. This range was recorded in mid-2021 before rallying to the current Bitcoin ATH of $69K recorded in November 2021.
technical analysis
By sleeping
the daily chart
After forming a pullback at the 100-day moving average line at $19.6K, the price continued to rise with notable momentum. However, bitcoin is now facing a strong resistance at $30K.
In favor of the bears, a significant divergence can be observed between the price and the RSI indicator, which could lead to a correction phase before a possible continuation to the upside.
4 hour chart
Looking at the recent price action of bitcoin, it can be seen that the intense bullish momentum has weakened as a confluence between bitcoin bulls and bears occurs in this specific price zone.
Considering the psychological strength of the $30K price level, the most likely scenario for bitcoin in the medium term is a consolidation in a stable range between $25K and $30K.
In case of a significant decline, the price range of the 0.5 ($24.4K) and 61.8 ($23K) Fibonacci retracements will support bitcoin.
on-chain analysis
It appears that bitcoin is currently experiencing a bullish market based on several reliable indicators. However, it is necessary to trade with caution due to the possibility of a price correction as a result of the recent rapid rise.
The above is also supported by short-term holder SOPR metrics, which saw a simultaneous sudden spike when Bitcoin reached the $30K resistance zone, indicating pressure from short-term investors.
This price range represents a significant obstacle in the way of bitcoin. A breakout above this level could potentially remove uncertainty and lead to heavy demand entering the market.
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Cryptocurrency charts by TradingView.
source: cryptopotato.com
