Bitcoin (BTC) price could not sustain last week’s jump. This casts some doubt on the possibility of a reversal of the upward trend that started two weeks ago. Crypto analyst Valdrin Tahiri examines the technical data needed to confirm the trend as bullish.
Bitcoin price fails to sustain weekly jump
Weekly timeframe technical analysis shows that Bitcoin price jumped significantly two weeks ago. The bounce confirmed the $24,800 horizontal area. This is a crucial area that has acted as both resistance and support (red and green symbols) intermittently since July 2022. So unless the price closes below it, the continued decline is only likely to be confirmed as a retest of the area and support in the process.
With this, cryptokoin.comAs you follow from , leading crypto Bitcoin could not sustain the increase last week. The price reached a local high of $27,486 and formed a long upper wick. Then, it closed lower. The wick (black icon) and low close indicate that the bulls are unable to sustain the uptrend. Instead, the bears took over and dragged the price down. If the decline continues, the $24,800 zone will be 5% below the current price. On the other hand, a 20% increase would be required for the price to reach the $31,000 resistance area.
Similar to price action, the weekly RSI is also uncertain. If the RSI value is above 50 and the trend is upward, the bulls still have the advantage. However, if the data is below 50, the opposite is true. Currently, the RSI is still above the bullish divergence trend line that started in July 2022. However, it is slightly below the 50 line. The initial bullish divergence is catalyzing the current upward move. Therefore, if the trend line is not broken, the trend can still be considered bullish.
Will the weekly BTC price break above the resistance?
Technical analysis for the daily time frame also gives conflicting signals. On the bullish side, Bitcoin price has reclaimed the $25,600 horizontal area after diverging below on September 11 (green circle). To make matters worse, the price has failed to break out of the descending resistance line since the yearly high. On the contrary, this line caused a rejection on September 19 (red icon).
Like the weekly time frame, the daily RSI is also close to the 50 line. Additionally, the bullish divergence trend line that led to a retracement of the $25,600 area is still intact. Also, it is currently at 41. The nearest support on the daily time frame is at $25,600, an area 3% below the current Bitcoin price. Besides the resistance line, the $29,250 resistance area is 12% above the current price.
Therefore, the near-term Bitcoin price will be determined by whether the price breaks out of the descending resistance line or declines below the $25,600 area instead. In case of an upside attack, an increase of at least 10% to $29,250 is possible. However, if it breaks $25,600 downwards, a drop to $24,800 is also on the table.
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