Bitcoin’s price has experienced a significant surge in recent months, surpassing several resistance levels. However, the current trend seems to be losing momentum, with the cryptocurrency experiencing difficulty in claiming the crucial resistance zone of $30K.

Technical Analysis

By Shayan

The Daily Chart

The price has broken out of its narrow consolidation range near $28K and is now aggressively attempting to breach the crucial resistance level at $30K. This level holds both psychological and technical resistance and is likely to determine the crypto market’s short-term future.

Should Bitcoin succeed in surpassing it, this may trigger a bullish trend toward the next significant resistance zone of around $38K. However, if it fails to break through, a drop toward the 50-day moving average at $26K or the mid-trendline of the channel at approximately $25K may occur.

Regardless of the outcome, the bulls can remain hopeful as long as the price stays above the 200-day moving average, a crucial indicator for identifying the market’s overall bias.

The 4-Hour Chart

When examining the 4-hour timeframe, it becomes evident that the price of Bitcoin has recently formed a head-and-shoulders pattern, indicating an increased probability of an upcoming short-term reversal. However, it’s important to note that if the pattern results in a rejection, the multi-month ascending trendline will assume a more critical role as a primary support region.

Despite the development of this pattern, Bitcoin’s price currently finds itself in a state of limbo, confined within the dynamic range that exists between the ascending trendline and the critical $30K resistance area.

Consequently, its direction in the mid-term remains uncertain and dependent on a breakout beyond this range.

On-chain Analysis

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