After reaching the critical price area of $29-30K, Bitcoin’s bullish rally got rejected, and the price went back into the $27-28K consolidation range.
Over the next short-term, the $30K mark will likely serve as the most major resistance. This range was the bottom recorded in mid-2021 before the rally to the current Bitcoin’s ATH at $69K recorded in November 2021.
Technical Analysis
By Shayan
The Daily Chart
After forming a pullback to the 100-day moving average line at $19.6K, the price continued to spike with notable bullish momentum. However, Bitcoin now faces powerful resistance at $30K.
On the bearish side, a significant divergence between the price and the RSI indicator can be seen, which could lead to a correction phase before a possible continuation upwards.
The 4-Hour Chart
By looking at Bitcoin’s recent price action, it can be seen that the intense bullish momentum has weakened while a confluence takes place between the Bitcoin bulls and bears at this specific price region.
Considering the psychological strength of the $30K price level, the most probable scenario for Bitcoin in the mid-term is to consolidate in a static range between $25K and $30K.
In the event of a significant plummet, the price range between the 0.5 ($24.4K) and 61.8 ($23K) levels of Fibonacci retracement will likely support Bitcoin.
On-chain Analysis
It appears that Bitcoin is currently experiencing a bullish market based on several dependable indicators. However, it is essential to trade with caution due to the possibility of a price correction resulting from the recent rapid increase.
The Short-Term Holder SOPR metric also supports the above, when it had seen a sudden spike simultaneously, with Bitcoin reaching the resistance zone of $30K, indicating selling pressure from short-term investors.
This price range represents a significant barrier to Bitcoin on its way up. A breakout above this level could potentially clear uncertainty and lead to massive demand to enter the market.
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Cryptocurrency charts by TradingView.
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