Bitcoin Price Shows Bearish Signs at Long-Term Resistance
The Bitcoin (BTC) price is currently trading below important resistance levels in both the weekly and daily timeframes, indicating a bearish trend until those levels are reclaimed. The rejection of the $30,500 resistance area in the weekly timeframe has created selling pressure and a bearish outlook. A breakout above this resistance could lead to a 30% increase to the next resistance at $38,400, while a continued decline could result in a 14% drop to the next support at $25,200.
On-chain data suggests institutional accumulation phase has ended
On-chain data suggests that the institutional Bitcoin accumulation phase has come to an end, contributing to the market’s inactivity. However, miners have dumped more than 1,400 BTC in the last 24 hours. The weekly RSI is currently bearish, indicating that the market may be oversold. Additionally, a bearish divergence in the RSI is falling, which often precedes bearish trend reversals.
BTC Price Prediction: Will Price Reclaim Resistance?
Similar to the weekly timeframe, the daily timeframe also provides a bearish outlook for the BTC price. The daily RSI has generated a bearish divergence, and the price trades below the $29,800 resistance area. The most likely future price outlook is a decrease to the 0.5 Fib retracement support level, potentially leading to a drop of nearly 4%. However, if the price manages to move above the $29,800 and $30,500 resistance area, a bullish trend reversal could occur, with a 30% increase to the next resistance at $38,400.
Hot Take: Bitcoin Price Faces Bearish Pressure at Resistance Levels
The Bitcoin price is currently facing bearish pressure as it trades below important resistance levels in both the weekly and daily timeframes. The rejection of the $30,500 resistance area has created selling pressure and a bearish outlook. On-chain data suggests that the institutional accumulation phase has ended, contributing to market inactivity. However, miners have been dumping BTC, adding to the bearish sentiment. The RSI indicators in both weekly and daily timeframes show bearish divergences, indicating potential trend reversals. The most likely future price outlook is a decrease to the support level, but if the price manages to break above the resistance levels, a bullish trend reversal could occur.
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