The Bitcoin (BTC) Price Increase Stalls at $28,000
Last week, the Bitcoin price failed to close above $28,000 after experiencing an increase. Since October 2, when it reached a high of $28,580, Bitcoin has been trading within a horizontal range. The question now is where it goes from here.
Analysis of the Weekly Timeframe
An analysis of the weekly timeframe shows that Bitcoin’s price has been rising since September 11. This upward movement has confirmed the $25,300 level as a reliable support. Two weeks ago, the BTC price increase gained momentum and formed a bullish engulfing candlestick pattern, indicating a positive outlook for future price trends.
However, last week’s candlestick had wicks on each side, suggesting indecision in the market. Currently, the BTC price is trading in the middle of a horizontal range between $25,300 and $30,500.
The Undetermined RSI
The weekly Relative Strength Index (RSI) is currently undetermined. Traders use the RSI as a momentum indicator to determine whether a market is overbought or oversold and make decisions accordingly. If the RSI reading is above 50 and trending upward, it indicates an advantage for bulls. Conversely, if the reading is below 50, it suggests a disadvantage for bulls.
Since August, the RSI has been trading very close to the 50 trendline, indicating an undetermined trend.
BTC Price Prediction: Will Deviation Lead to Retest of Range Low?
On the daily timeframe, the technical analysis for the Bitcoin price leans bearish. The decrease that started on October 2 confirmed that the previous move above $28,000 was only a deviation and not a legitimate breakout.
Despite the bearish price action, there is hope for an increase based on the RSI. The bullish divergence trendline that preceded the entire increase is still intact, and the RSI is above 50.
If the ongoing rejection continues, Bitcoin could fall by another 7% and reach the descending resistance trendline at $26,000.
Hot Take: Potential for a 9.50% Increase
Despite the bearish Bitcoin price prediction, if there is a daily close above the $28,000 resistance area, it could lead to a 9.50% increase towards the next resistance at $30,500.
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