Bitcoin Rejected at Critical Resistance, This is the Level to Watch Now: BTC Price Analysis

After reaching the critical price area at $29-30K, Bitcoin’s bull run was rejected, and the price returned to the $27-28K consolidation range.

In the next short term, the $30,000 mark is likely to act as the main resistance. This range was the lowest recorded in mid-2021 before surging to the current Bitcoin ATH of $69k recorded in November 2021.

Technical Analysis

by Cheyenne

daily chart

After forming a pullback to the 100-day moving average line at $19.6k, the price continued to rise with noticeable bullish momentum. However, Bitcoin is now facing a strong resistance at $30,000.

On the downside, a large divergence could be seen between the price and the RSI indicator, which could lead to a correction phase before a possible continuation to the upside.

4 hour chart

By looking at the recent Bitcoin price action, it can be seen that the intense bullish momentum has weakened while Bitcoin bulls and bears converge in this particular price area.

Given the psychological strength of the $30K price level, the most likely scenario for Bitcoin in the medium term is consolidation in a stable range between $25K and $30K.

In the event of a significant drop, the price range between 0.5 Fibonacci retracement levels ($24.4K) and 61.8 ($23K) is likely to support Bitcoin.

On-chain analysis

It appears that Bitcoin is currently in a bull market based on several reliable indicators. However, it is necessary to trade with caution due to the possibility of a price correction as a result of the recent rapid increase.

The short-term bearer SOPR measure also supports the above, when it saw a sudden rally simultaneous, with bitcoin reaching the $30k resistance area, indicating selling pressure from short-term investors.

This price range is a huge barrier for Bitcoin on the way up. A break above this level could remove the uncertainty and trigger a massive demand to enter the market.