The Bitcoin (BTC) price struggles to sustain its bounce
The Bitcoin (BTC) price experienced a significant bounce two weeks ago, validating the $24,800 support area. However, last week, the price failed to maintain its upward momentum and closed bearishly. Bulls were unable to sustain the upward movement, allowing bears to take control and push the price down.
Weekly timeframe analysis
In the weekly timeframe, the BTC price bounced off the $24,800 support area. As long as the price doesn’t close below this level, it could be considered a retest of the support area, potentially validating it. To confirm a bullish trend reversal, a breakout from the descending resistance line is needed.
Daily timeframe analysis
On the daily timeframe, conflicting signals are observed. The price reclaimed the $25,600 support area after briefly deviating below it. However, it failed to break out from the descending resistance line that has been in place since the yearly high.
RSI analysis
The RSI reading is slightly below the 50-line on both weekly and daily timeframes. However, it remains above the bullish divergence trendline that started in July 2022. If this trendline holds, the overall trend can still be considered bullish.
Potential scenarios
In the near term, the BTC price will be influenced by whether it breaks out from the descending resistance line or breaks down below the $25,600 support area. A breakout could lead to a 10% increase towards $29,250, while a breakdown may result in a drop to $24,800.
Hot Take: Uncertain Outlook for Bitcoin Price
The recent price action and technical indicators suggest an uncertain outlook for the Bitcoin (BTC) price. While there was a bounce off a crucial support level, the failure to sustain the upward movement raises doubts about a bullish trend reversal. Traders should closely monitor the breakout from the descending resistance line and the RSI reading to gauge market conditions. The near-term price direction will likely be determined by these factors, with potential targets at $29,250 on the upside and $24,800 on the downside.
By
By
By
By