• Bitcoin’s price has seen a massive uptrend, breaking above the $25K resistance level and heading towards $30K.
• The RSI indicator is signaling a potential pullback or consolidation in the short term.
• A deeper pullback could lead to a retest of the $23K level.
Bitcoin Breaks Above Significant Resistance
Bitcoin’s price has surged over the past week, following a V-shaped rebound from the 200-day moving average located amid the $20K mark and then breaking above the important resistance of $25K. The current surge is taking Bitcoin towards the key mid-term resistance at around $30K.
Potential Correction Ahead?
Although bullish sentiment remains in place, the RSI indicator has entered an overbought area on both daily and 4-hour time frames, indicating that a correction or consolidation could be ahead in the short term. In this case, support may be found at around $25K, however if there is further correction then it could take Bitcoin back to its previous support level of approximately $23K.
Key Support Levels
The key support levels for Bitcoin are currently at around $23K and then again at approximately $25K. If these levels hold up during any potential correction then it will likely pave way for further upside momentum as Bitcoin looks to break above its all-time high of around $30K sometime soon.
Technical Analysis
Looking at technical analysis on both daily and 4-hour time frames reveals that while bullish sentiment remains in place there is still potential for some short term corrections before we see more upside momentum from Bitcoin in coming months. Key support levels can be found at around $23K and again at approximately 25k which should provide enough buffer against any potential bearish pressure.
Conclusion
In conclusion, while bullish sentiment remains strong it seems likely that we will see some short term corrections before we see further gains from Bitcoin in coming months as it tries to break above its all-time high of around 30k sometime soon. Key support levels can be found at 23k and 25k which should provide enough buffer against any bearish pressure during these times of volatility.
