BTC Price Rally to $40K or Correction to $31K Next? (Bitcoin Price Analysis)

The Daily Chart

Upon examining the daily chart, Bitcoin has been on a noticeable uptrend since the start of 2023, pushing in an ascending channel pattern with higher highs and lows.

This pattern highlights the prevailing influence of buyers, driving the price close to a crucial resistance level of around $35K. The RSI indicator also corroborates this trend, approaching the overbought territory and indicating heightened buying pressure.

If buyers manage to secure this pivotal level, it could open the door for a positive mid-term trend, potentially targeting higher resistance zones. However, given the rapid price spike, a consolidation correction phase with minor retracements remains highly probable.

Source: TradingView

On the 4-hour chart, Bitcoin has surpassed its previous significant daily swing high at approximately $31.8K, sustaining a strong upward momentum. This increase resulted in a new daily high of around $35K, underscoring the prevailing demand in the market.

Nevertheless, the price currently faces substantial resistance at $35K, marked by abundant supply. This resistance has momentarily slowed down the upward movement, triggering a corrective phase. In this scenario, key support levels for Bitcoin include the 0.5 Fibonacci retracement level at $30.9K and the previous swing high at $31.8K.

However, if demand surpasses the available supply, an imminent breakout leading to a robust price surge becomes likely. Regardless of the outcome, close monitoring of price movements in the coming days is essential due to the potential for increased market volatility.

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Author: CryptoVizArt

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