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BTC Skyrockets 15% Weekly but Bearish Signs Start Flashing: is a Correction Coming? (Bitcoin Price Analysis)

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Bitcoin is facing challenges in surpassing the significant resistance at $30K, which has been holding the price for a prolonged period. If successful, this breakthrough would result in a bullish bias for the cryptocurrency in the medium term.

By Shayan

Bitcoin recently found support at both the static support level of $25K and the lower trendline of the channel. Consequently, the substantial buying pressure in this support region led to a significant surge, with the aim of breaking through the $30K resistance.

However, upon reaching the $30K level, Bitcoin entered a consolidation phase, accompanied by weakened bullish momentum.

It is important to note that the price has formed a double-top – a well-known bearish reversal pattern, at this level, thereby increasing the likelihood of a short-term reversal. Furthermore, the RSI indicator currently indicates an overbought condition in the market, acting as a catalyst for the potential reversal scenario.

In the event that the price faces rejection within this crucial price range, the first target for Bitcoin would be the 100-day moving average of $27,900.

Source: TradingView

Switching to the 4-hour chart, Bitcoin developed a series of higher highs and higher lows during the recent bullish phase, indicating a healthy and robust upward rally. However, upon encountering the $30K resistance, the rally stopped, and the price entered a consolidation phase without providing any clear indication of its next move.

Most recently, the price slightly surpassed the previous major high at $31K, creating a new high. Nonetheless, since the cryptocurrency hasn’t continued its upward movement beyond the $31K mark, this cannot be considered a new significant high.

Ultimately, if Bitcoin breaks above the $30K region and consolidates at higher levels, it will likely trigger a solid bullish rally. Conversely, if selling pressure dominates the market and leads to a decline, the following targets for Bitcoin would be the 100-day moving average at $29K and the static support level of $25K.