Bitcoin Is Consolidating But Is A Rally Near?

Bitcoin has been trading sideways for almost a week now. The currency continued to stay under the $30,000 level. The technical outlook of Bitcoin could indicate a price shift on the long-term price chart.

However, on the short-term price chart, King Coin price action is still quite bearish. At the time of writing, Bitcoin appears to be stabilizing slightly above the $28,000 support line. In the past 24 hours, the coin lost 1.2% of its value and in the past week, the coin recorded some recovery.

After Bitcoin traded for $28,000, the bulls came to the rescue and defended this level. This can be attributed to the positive change in price at the time of writing. The $28,000 support line is crucial for Bitcoin as a drop from this level could push the coin to $24,000 or even lower.

Bitcoin Price Analysis: 1 Day Chart

Bitcoin is trading at $29,000 on the one-day chart | source: BTCUSD on TradingView

The cryptocurrency is trading at $29,600 at the time of writing. Over the past week, the coin touched the $30,000 mark and fell below it.

The critical support line for the King coin stood at $28,000. The coin’s upper resistance was at $31,000. The volume of Bitcoin was green which means that the bulls are still struggling to defend the currency in the market.

If the bulls start slowly entering the market, BTC may re-attempt to move above the $31,000 price level. A move above the $31,000 price mark will make buyers re-enter the market and reinforce positive price action in the market.

Technical Analysis

Bitcoin recorded a slight improvement in the number of buyers on the 1-week chart | Source: BTCUSD on TradingView

The technical outlook for bitcoin has painted a bearish picture on the 1-week chart. Even with slight improvements over the past 24 hours, the coin’s price action was still weak. The RSI was near the oversold territory but the currency was slightly better than the oversold.

Despite the slight increase, it could hardly be referred to as a positive development. The Moving Average Convergence Divergence has undergone a bearish crossover. After the bearish crossover, MACD is flashing red histograms associated with a sell signal in the market.

Although the technical picture was bearish, an interesting point can be noted from the above chart. At the time of writing, BTC is close to the $29,000-$28,000 price range which is positive because this price tag previously acted as a price spike before (in blue).

Related reading | Perp Traders Remain Calm as Bitcoin Struggles to Hold $30,000

Bitcoin RSI showing chances of price reversal on 1-month chart | Source: BTCUSD on TradingView

On the 1-month chart, Bitcoin has shown an opportunity for a positive price shift. Bitcoin RSI has formed a falling wedge pattern. A bullish falling wedge pattern. Indicates a trend reversal. A move above the $31,000 price tag will push BTC near $36,000.

Related reading | Bitcoin Bearish Signal: The whale percentage continues to stay high

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