• Bitcoin has been in a strong upswing, but it has yet to break the $30K resistance level.
• The bulls have encountered significant resistance around the $30K psychological level.
• A divergence between the price and RSI indicator suggests a possible correction or consolidation phase.
Bitcoin Price Analysis
Bitcoin’s recent impulsive rally seems to have reached a temporary halt, with the price likely entering a correction or consolidation phase before continuing its uptrend. Significant resistance is located at the $30K mark, which has yet to be tested. Technical analysis shows that there are signs of decreasing bullish momentum and potential retesting of two major support levels at $25K and roughly between $24.4K – $23K if a correction occurs. A divergence between the price and RSI indicator further strengthens this possibility.
Daily Chart Overview
After forming a pullback to 61.8% Fibonacci retracement level at around $19.6K, Bitcoin initiated an impressive rally with its current high surpassing above $28K; however, the bulls failed to reach the significant resistance area of $30K which also acts as a psychological barrier for traders believing that once this resistance is broken, it will signal an end for the bear market cycle. Meanwhile, clear divergence can be identified between Bitcoin’s price and RSI indicator suggesting potential short-term correction or consolidation stage ahead.
4-Hour Chart Analysis
The 4-hour timeframe chart reveals more insights into Bitcoin’s impulsive bullish rally; however, recent price action indicates that bullish momentum has weakened leading to a possible short-term corrective or consolidative phase for Bitcoin’s price action. If this scenario plays out then two major support levels could come into play: firstly at around $25k followed by another support zone located roughly between 0.5 – 61.8 Fibonacci retracement levels at around $24.4k -$23k respectively; furthermore, divergence seen between Bitcoin’s price and RSI indicator further increases chances of such corrective move taking place soon enough..
Significance Of Breaking The Resistance Level
Breaking above the psychological resistance level of 30k could be key factor in signalling an end to bear market cycle; although technically speaking there are still other important resistances such as previous all time highs etc… yet breaking through 30k would be very symbolic in terms of allowing much higher prices over coming months (possibly even years).
Overall it appears that Bitcoin is temporarily stalled from moving higher as significant resistance exists at 30k accompanied by weakening bullish pressure exhibited via divergence pattern on both daily & 4 hour charts . Therefore next few days should reveal whether current corrective/consolidative move will take place or not followed by further upside movement towards 30k + region