After a prolonged period of silence near the critical $30K threshold, the price has encountered significant rejection, resulting in a swift and rapid decline.

However, the current scenario shows the price consolidating close to the crucial support range of $25K, where it could potentially find a bottom and halt further downtrends.

Technical Analysis

By Shayan

The Daily Chart

Following a minor corrective phase, where a bearish divergence occurred between the price and the RSI indicator, Bitcoin experienced a forceful rejection and underwent a rapid drop. This recent decline caused the price to breach a significant and pivotal support area encompassing the 100-day and 200-day moving averages, indicative of an overall bearish sentiment in the market. Subsequently, the cryptocurrency dipped and arrived at the pivotal support zone of $25K.

However, the price action within this critical support zone carries substantial significance, as the $25K level has long served as crucial psychological support. Therefore, if it receives support and witnesses an upsurge in buying activity, market participants could potentially anticipate a reversal.

Conversely, without such support, the price might breach this mentioned support level, potentially triggering a cascading effect that drives it toward the notable support area at $20K.

The 4-Hour Chart

Shifting attention to the 4-hour chart, it becomes evident that the price is confined within a static range, oscillating between the notable resistance at $30K and the significant support at $25K. Following a swift descent from the $30K resistance zone, BTC has now approached the lower threshold of the range, resting near the $25K support area.

Despite this decline, the $25K support level holds the potential to stave off further short-term declines due to the existing demand around this crucial range. Consequently, a positive response within this defined range could potentially pave the way for a fresh upward trajectory, propelling the price toward the substantial resistance level at $30K.