Bitcoin’s Bearish Outlook: Technical Analysis
Bitcoin’s price has been highly volatile, recently surpassing its previous minor swing high but facing significant rejection. The overall price action suggests a bearish outlook as it approaches a crucial area.
The Daily Chart
1. A bearish double-top pattern has formed near the major resistance region of $30K on Bitcoin’s daily chart.
2. The price is encountering significant dynamic resistance from the middle-trendline of the ascending channel.
3. A noticeable divergence between the price and the RSI indicator indicates a shift in market condition from an uptrend to a possible downtrend.
4. If selling pressure dominates, Bitcoin’s next target would be the 100-day moving average around $28K.
5. Based on recent price action, a rejection from the substantial resistance at $30K seems likely.
Hot Take: Despite recent volatility and rejection, the technical analysis suggests a bearish outlook for Bitcoin. Traders should closely monitor the $30K resistance level and be prepared for a potential downtrend.
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