Bitcoin Price Analysis: BTC Hovering Above Yearly Support; Will It Hold?
The Bitcoin(BTC) price is stuck in a short consultation at the bottom support of a large one. However, multiple retests to the $30000 support zone suggest the buyers defend this level with vigor. Furthermore, a bullish breakout from the overhead resistance of $33000 should fire an early signal for a recovery rally.
Key points:
- The BTC price shows a first weekly green candle after a nine red ones
- The weekly 50-and-100 EMA is nearing a bearish crossover
- The intraday trading volume in the Bitcoin is $18.3 Billion, indicating a 37.5% loss
Source-Tradingview
The BTC/USDT pair shows a range-bound rally in the weekly time frame chart. The coin price has twice tested the extreme ends of this range, i.e., $65000 and $30000, suggesting the traders respect these levels.
The BTC price triggered a new bear cycle after marking a New All-time High of $68789 on November 10th, 2021. The downtrend tumbled the coin price by 58%, returning it to the $30000 mark.
Historically, this support level initiated the February and July 2021 bull run. In addition, a long-tail rejection candle on May 12th during the current retest accentuates the high demand pressure.
However, for more than three weeks, the BTC price hovering above this level reflects uncertainty among market participants. This short consolidation extends its wicks from $33000 to $28500.
A weekly-candle closing below the $30000 mark triggered another massive sell-off and tumbled the coin 30% lower to the $20000 mark.
Conversely, an upside breakout from the minor consolidation resistance of $33000 may hint at a possible bullish reversal and continue the range-bound rally with the next target at $65000.
Technical indicator-
Along with $33000 support, the BTC price hits another crucial technical support 200-day EMA, strengthening the demand pressure from the downside. However, the fallout from other EMAs(20, 50, and 100) may interrupt a potential rally.
The weekly-RSI slope near the lower end of the range accentuates an overall downtrend.
- Resistance level- $30500, and $33000
- Support level- $28500 and $26700
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