Is there any chance of bitcoin rising back above $30k again?!
BTC/USD returned most of its gains last week before rising from $27,200.
Since then, the price has formed higher lows and higher highs within an ascending channel formation.
Can this short-term support area keep losses in check?
Bitcoin (BTC/USD) 15-minute chart by TradingView
So far, buyers seem to be defending the floor, especially as technical indicators hint at bearish exhaustion.
Not only does the stochastic reflect oversold conditions, but the 100 SMA is also above the 200 SMA to indicate that the path of least resistance is still upward.
In other words, there is a good chance that the rally will resume in the short term and bring bitcoin back to nearby resistance levels such as the channel top at $28,000 or the middle channel area at $27,800.
Then again, BTC/USD dropped below both moving averages to reveal some pips in favor of the bears. These indicators may hold as dynamic resistance levels in the rapid rises.
If so, Bitcoin could suffer another wave of selling and drop below the bottom of the channel to resume its larger decline that started in mid-April.
In this case, BTC/USD could complete a flag pattern on the longer-term timeframes, indicating a prolonged decline which is quite common in the cryptocurrency market.
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