The Bitcoin (BTC) Price Bounced Last Week, On the other hand, Can It Break Out?
The Bitcoin (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 to be able to confirm a positive trend trend reversal.
How Does BTC’s Movement Compare to the Previous Cycle?
The present descent in BTC’s price since its November 2021 record-breaking 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.
Over the past 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 the present cycle, Bitcoin began a more gradual upward trend, increasing by 100% in 240 days and hitting a peak of $31,800 in July.
Bitcoin (BTC) Bounces After Bullish Divergence – Will It Break Out?
Technical analysis for the daily timeframe shows conflicting signs for BTC. The price has dropped since its yearly high of $31,800 and is as of now contained within a descending resistance line. Although while there was a bounce after hitting this line, it failed to reach the resistance line itself, indicating weak positive trend strength.
If Bitcoin breaks out from the line, it could accomplish the next resistance at $29,200. Nonetheless, failure to maintain the increase could lead to an 8% fall to the level of support at $24,300.
The daily RSI provides mostly positive trend readings with an increasing trend and a positive trend divergence. This divergence implies that regardless 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 price 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.
Bernard Nicolai emerges as a beacon of wisdom, seamlessly harmonizing the roles of crypto analyst, dedicated researcher, and editorial virtuoso. Within the labyrinth of digital assets, Bernard’s insights echo like a resonant chord, touching the minds of seekers with diverse curiosities. His talent for deciphering the most intricate strands of crypto intricacies seamlessly aligns with his editorial finesse, transforming complexity into a captivating narrative of comprehension.