Bitcoin price rises after breaking above a significant resistance level. However, the 2022 bear market is not over until another critical level is broken to the upside.
Technical Analysis
Author: Edris
Daily chart
On the daily chart, Bitcoin price has seen a huge uptrend over the past week, following a V-shaped bounce from the 200-day moving average that sits in the middle of the $20,000 mark, followed by a decent break above the $25,000 resistance level.
Currently, the price is heading towards the key $30,000 area, a medium-term resistance, where a break above it would likely lead to a bullish phase in the coming months.
However, the RSI indicator has entered the overbought area and signals a potential pullback or consolidation in the short term. In this case, the $25,000 area could be retested as it now acts as a support level.
4-hour chart
In a 4-hour time frame, the price of Bitcoin rose almost vertically. It recently breached the $25k level and retested it before continuing higher.
Although the market structure is bullish in this timeframe, a consolidation or pullback is still possible as the 4-hour RSI indicator indicates a clear divergence between recent highs. While the $25,000 level should provide support, a deeper pullback could lead to a retest of the $23,000 level.
Despite the above, given the price action on both the daily and 4-hour charts, it may only be a matter of time before Bitcoin hits the $30,000 mark for the first time in nearly a year. The withdrawal could be delayed until reaching the $30k level.
Analysis on the chain
By Shayan
The price of Bitcoin has started a strong uptrend over the past few weeks, marking a sudden spike. However, market participants, especially small investors, may find the recent price increase an opportunity to make some profit and manage their risk.
As the chart below shows, the foreign exchange reserve metric declined until the price surged past the key $25K level. Since then, the metric has experienced a slight uptick and started an upward trend, meaning that inflows into exchanges exceed outflows, and participants are sending bitcoin to exchanges for the purpose of selling. The behavior of this metric should be monitored in the coming days.
Binance Free $100 (Exclusive): Use this link to register and get $100 free and 10% discount on Binance Futures for the first month (conditions).
PrimeXBT special offer: Use this link to register and enter POTATO50 code to get up to $7,000 on your deposits.
Disclaimer: The information found on CryptoPotato is that of the quoted writers. It does not represent CryptoPotato’s opinion on whether to buy, sell or hold any investments. We advise you to do your own research before making any investment decisions. You use the information provided at your own risk. See Disclaimer for more information.
Cryptocurrency charts by TradingView.