For the past two weeks, Bitcoin has maintained its range-bound price movement. However, there are several indicators pointing toward an imminent breakout.

Technical Analysis

By Edris

The Daily Chart

The price has been consolidating within a narrow range on the daily timeframe for the last 7 days. This consolidation follows the market’s downward rejection at the $30K resistance level and the subsequent breakdown of the 50-day moving average of around $29K.

Currently, the expected bearish target for the price is the $25K support level. However, there is a possibility that the price may first retest the 50-day moving average before continuing its decline toward $25K.

The RSI is also showing an upward trend and is approaching the 50% threshold, indicating a potential pullback toward the 50-day moving average or perhaps even another retest of the $30K resistance level in the coming weeks.

It’s worth noting that the latter scenario would likely invalidate the former, and a bullish breakout above the $30K level would then be more likely in this case.

The 4-Hour Chart

The 4-hour chart presents an intriguing situation. Currently, the price is undergoing a retest of both the $27,500 level and the upper boundary of a small bearish flag. If it faces another rejection, there is a strong likelihood of a decline towards the lower boundary of a larger channel and the $25K support level.

On the contrary, a breakout above this area would potentially result in a push out of the larger channel, followed by a subsequent retest of the $30K level in the near future.

Additionally, the RSI on this timeframe indicates bullish momentum with values above 50%, further enhancing the likelihood of the bullish scenario unfolding.

On-chain Analysis

By Shayan