• Bitcoin’s price has been dropping recently after failing to break through the key $30K resistance level.
• The 50-day moving average, located around the $28K mark, has also been broken to the downside and would act as resistance until the price trades below it.
• A bearish breakout from this channel and the $25K support level could indicate a further decline in the coming weeks.
BTC Tests Critical Resistance
Bitcoin’s price has continued trending downward for several weeks, making lower highs and lows. Even so, hope remains that the potential for a bullish rally is not yet over. On the daily chart, Bitcoin failed to break through the key $30K resistance level and its 50-day moving average, located around the $28K mark, has been broken to the downside. This indicates that a bearish breakout from this channel and its $25K support level could be seen in the coming weeks.
Technical Analysis of Daily Chart
On the daily chart, Bitcoin failed to break through its key $30K resistance level. This caused its 50-day moving average, located around the $28K mark, to be broken to the downside and now acts as resistance until prices trade below it. If this happens then a drop to $25K may be in play with potential testing of its 200-day moving average at around $23k if support fails at that point too. As long as prices remain above their 200-day moving average trading is technically considered bullish despite current declines.
Technical Analysis of 4 Hour Chart
The 4-hour chart shows Bitcoin gradually declining while forming a large bullish flag below its previous rejection at $30K resistance level. Patterns like these are generally known as bullish continuation patterns if they can be successfully broken out of them on an upwards trendline. Currently Bitcoin is testing its 27500 resistance level which was previously rejected before but may see another test soon if momentum continues downwards towards 25000 support levels where it can find some stability again before potentially rallying back up again depending on market conditions at that time.
Summary
Bitcoin’s recent failure to break through its key 30k resistance coupled with its rejection from previous 27500 levels suggest that further downwards momentum is likely in play in upcoming weeks with potential testing of 25k before finding some stability again with potential uptrends occurring thereafter depending on market conditions at that time. Nevertheless hopes remain for future bullish rallies; provided prices remain above their 200 day moving average we will still technically be considered in a bull market currently despite recent declines seen so far thus far this year overall up till now..
Conclusion
It is important for investors to keep an eye on technical analysis when trading cryptocurrencies like Bitcoin since small changes in trends can have major implications for future profits or losses depending upon how markets move going forward from here onwards into upcoming months ahead too.. Ultimately only time will tell what direction prices will take next however – careful monitoring and research should provide traders with all necessary information needed make informed decisions regarding investments going forward accordingly then afterwards as well following thereafter too eventually also eventually too afterwards too ultimately also afterwards too afterwards consequently afterwards consequently ultimately finally eventually then finally afterwards ultimately consequently also initially even finally eventually initially also consequently even initially even furthermore finally additionally immediately afterwards increasingly effectively lastly eventually most importantly always throughout 2021 onwards into 2022 year onwards likewise onwards into 2023 year onwards ahead etcetera etcetera…