The Bitcoinย (BTC) Price Bounced Last Week, Onย theย otherย hand, Can It Break Out?
The Bitcoinย (BTC) price recently experienced a bounce, signaling a probable end to its month-long consolidation. Nonetheless, Bitcoin still needs to break out from a critical descending resistance line toย beย ableย to confirm a positiveย trend trend reversal.
How Does BTCโs Movement Compare to the Previous Cycle?
Theย present descent in BTCโs price since its November 2021 record-breakingย peak shares similarities with the period after the 2017 high. Both cycles saw bottoms reached after 12 months and short-term RSI decreases below 50 before eventual increases over 50.
Overย theย pastย cycle, Bitcoin initiated a 340% upward movement that lasted for 180 days before correcting by 70% over 270 days. The price never closed below the long-term horizontal support of $6,500.
In theย present cycle, Bitcoin began a more gradual upward trend, increasing by 100% in 240 days and hittingย aย peak of $31,800 in July.
Bitcoinย (BTC) Bounces After Bullish Divergence โ Will It Break Out?
Technical analysis for the daily timeframe shows conflicting signs for BTC. The price hasย dropped since its yearly high of $31,800 and is asย ofย now contained within a descending resistance line. Althoughย while there was a bounce after hitting this line, it failed to reach the resistance line itself, indicating weak positiveย trend strength.
If Bitcoin breaks out from the line, it couldย accomplish the next resistance at $29,200. Nonetheless, failure toย maintain the increase could lead to an 8% fall to the levelย ofย support at $24,300.
The daily RSI provides mostly positiveย trend readings with an increasing trend and a positiveย trend divergence. This divergence impliesย that regardlessย of price decreases, momentum is increasing and could result in a breakout.
Hot Take: The Future of Bitcoin Price Depends on Breakout or Rejection
The future priceย forecast for Bitcoin will largely depend on whether it can break out from the resistance line or if it gets rejected. A breakout could lead to an 8% increase, while a rejection could result in a 10% fall.
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