• Bitcoin’s price has been trending to the upside since the beginning of 2023.
• However, it has been showing signs of a reversal recently, following a clear rejection from the $30K resistance level.
• If a breakdown were to occur, a rapid plunge toward the $25K zone could be expected in the near term.
BTC Price Analysis
Bitcoin’s price has been trending upwards since the start of 2023 and recently reached its peak at $30K before encountering resistance and beginning to show signs of reversal.
Technical Analysis
On the daily chart, the 50-day moving average is providing support around the $28K mark but is currently being broken down. If a valid bearish breakout occurs, then the next probable target would be around $25K followed by 200-day moving average near $22K. The RSI has also dropped below 50%, signifying that momentum may be shifting bearishly in short-term.
4-Hour Chart
On 4-hour chart, it can be seen that Bitcoin is trading between two levels -$30K & $28K and currently testing support at $28K. In case of a breakdown here, we can expect prices to plunge rapidly towards $25K zone. The RSI is approaching oversold area which increases probability for price to rebound from this level and push back towards resistance at $30K.
Conclusion
Overall, classical price action points more towards a bearish scenario for Bitcoin in both short and long-term as it continues to show signs of weakness after hitting its peak at 30k.
Takeaway
The current market sentiment suggests that investors should remain cautious while trading Bitcoin as prices are likely to continue going down if they fail to break past key levels like 30k or 28k.