Bitcoin is consolidating, but is a rally imminent?

Bitcoin has been trading sideways for almost a week. The coin continues to hold price levels below $30,000. Bitcoin’s technical outlook could point to a price shift on the long-term price chart.

However, on the short-term price chart, the price action of the gold coin remains quite bearish. At the time of writing, BTC appears to have traded just above the $28,000 support line. The coin has lost 1.2% in value over the past 24 hours, and in the last week, the coin has seen some recovery.

After Bitcoin traded at $28,000, the bulls came to the rescue and defended this level. At the time of writing, this could be interpreted as a positive change in price. The $28,000 support line is crucial for Bitcoin as a decline from this level could push the coin to $24,000 or even lower.

Bitcoin Price Analysis: One Day Chart

Bitcoin is trading at $29,000 on the one-day chart | Source: BTCUSD on TradingView

At the time of writing, the cryptocurrency is trading at $29,600. For the past week, the coin has been hitting the $30,000 mark and falling below it.

The key support line for King coin is $28,000. The overhead resistance for the coin is at $31,000. Bitcoin’s volume is in the green, which means that the bulls are still struggling to defend the coin in the market.

If the bulls slowly start to enter the market, BTC could re-attempt to break above the $31,000 price level. A break above the $31,000 price barrier would allow buyers to re-enter the market and reinforce the positive price action in the market.

technical analysis

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Bitcoin sees a slight increase in the number of buyers on the one-week chart| Source: BTCUSD on TradingView

Bitcoin’s technical outlook paints a bearish picture on the weekly chart. Even with a slight improvement over the past 24 hours, the coin’s price action remains weak. The Relative Strength Index is close to oversold territory, but the coin is slightly better than oversold.

Despite the small uptick, it can hardly be called a positive development. The Moving Average Convergence Divergence experienced a bearish crossover. After the bearish crossover, the MACD flashed a red histogram, associated with a market sell signal.

Despite the bearish technical outlook, an interesting point can be seen from the chart above. At the time of writing, BTC is approaching the $29,000 to $28,000 price range, which is positive as this price marker has previously served as a marker (blue) to fuel a rally.

Related reading | Perp traders keep silent as Bitcoin struggles to hold $30,000

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Bitcoin’s RSI shows the likelihood of a price reversal on a one-month chart | Source: BTCUSD on TradingView

On the one-month chart, Bitcoin is showing an opportunity for a positive price shift. Bitcoin’s RSI is forming a descending wedge pattern. A falling wedge pattern is bullish. It means a trend reversal. A break above the $31,000 price barrier would bring BTC closer to $36,000.

Related reading | Bitcoin Bearish Signal: Whale Ratio Continues to Hold High

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