Despite the relative performance of altcoins in 2023, Bitcoin has seen a significant 75% bullish rally since the beginning of the year. However, Bitcoin\u2019s price has been unable to surpass the resistance level of $30,000 for a week, and this has stirred a technical belief that there is a possibility of a retracement streak toward the medium-term support level of $25,000.<\/p>\n
The annual upward movement in the price of Bitcoin, fueled by the banking crisis in March, may be hitting a roadblock at the $30,000 resistance level. To assess the underlying dynamics of BTC, we need to look at an extended chart, which provides a longer-term perspective spanning several weeks.<\/p>\n
Historically, the bullish reversals in this time frame have shown a well-defined chart structure, with phases of bullish impulses followed by periods of sideways transitions.<\/p>\n
Related Reading: Ethereum (ETH) Drops 11%, Sheds All Gains From Shanghai Rally<\/a><\/p>\n The recent bullish reversal in the last quarter of 2022, followed by the rebound from $20,000 that kickstarted the current rally, was preceded by a notable bullish momentum divergence (as indicated by the RSI technical indicator) from the oversold zone.<\/p>\n The RSI indicator has entered the technical overbought zone as BTC approached the $30,000 resistance level. The overall chart pattern resembles that of August 2020, which saw a retracement from $12,000 to $9,500 before the subsequent bull run starting in October 2020.<\/p>\n Considering chartist probabilities, the scenario of a retracement towards the major support at $25,000 has gained in probability. Therefore, preserving the $25,000 support level would be a key factor in invalidating the bullish trend in 2023. This retracement scenario could be triggered by a break of the short-term support at $28,800; the upper part of the bearish gap opened on Monday, June 13, 2022.<\/p>\n Related Reading: <\/strong>China Is Fast Losing Money: Their Bitcoin Stash Just Fell By $388 Million<\/a><\/p>\n The market is on a precarious edge following a significant session of long position liquidations. To avoid a potential return to $25,000, the market would need to bounce convincingly off the $28,800 level and break above the intermediate resistance at $29,500 to signal renewed bullish momentum. The situation remains fluid, and further price action will provide more insights into the direction of BTC\u2019s price movement.<\/p>\n The Impact Of Interest Rates And US Dollar On Bitcoin\u2019s Technical Analysis\u00a0<\/strong><\/p>\n Bitcoin is currently at a crucial chart juncture, and the market is expected to decide in the coming hours. This decision is likely to be influenced by two key factors from the inter-asset class dynamics: the trend of market interest rates and the behavior of the US dollar on the Forex, which has returned to its annual low and is acting as a support level.\u00a0<\/p>\n If there is a continuation of the rebound in rates and a breakout of support on the US dollar, it may negatively impact Bitcoin\u2019s price and increase the likelihood of a decline toward $25,000. On the other hand, if there is a cessation of the rebound in rates and the US dollar support level holds, it may counter the scenario of a decline toward $25,000. The market will ultimately determine which direction Bitcoin takes.<\/p>\n (This is not financial advice and is the observation of the author. Featured Image from iStock, charts from TradingView.com)<\/em><\/p>","protected":false},"excerpt":{"rendered":" <\/p>\n Despite the relative performance of altcoins in 2023, Bitcoin has seen a significant 75% bullish rally since the beginning of the year. However, Bitcoin\u2019s price has been unable to surpass the resistance level of $30,000 for a week, and this has stirred a technical belief that there is a possibility of a retracement streak toward the medium-term support level of $25,000.<\/p>\n The annual upward movement in the price of Bitcoin, fueled by the banking crisis in March, may be hitting a roadblock at the $30,000 resistance level. To assess the underlying dynamics of BTC, we need to look at an extended chart, which provides a longer-term perspective spanning several weeks.<\/p>\n Historically, the bullish reversals in this time frame have shown a well-defined chart structure, with phases of bullish impulses followed by periods of sideways transitions.<\/p>\nBitcoin Could Hit The $25,000 Support Level In Coming Days<\/strong><\/h2>\n
Is Bitcoin\u2019s Rally Losing Steam At $30,000?\u00a0<\/strong><\/h2>\n