Bitcoin has formed a bullish pattern on the long-term time frame. Prices may continue to rise this week.
Bitcoin broke out of a descending wedge with a large bullish bar in November. The move also helped BTC break the long-term bearish structure as it breached the $21,500 resistance area and hit the next resistance at $25,000.
After the correction, Bitcoin managed to break above the $21,500 area as support and formed a bullish engulfing pattern. This is a strongly bullish pattern, showing that the bulls have taken control of the price action.
Therefore, BTC may break the $25,000 resistance area in the short term.
The RSI is sloping upwards and surpassing 50, favoring a breakout for Bitcoin. If successful, the next level of resistance is at $30,000, created by the previous support area.
BTC/USDT Weekly Chart | Source: TradingView
short term outlook
After BTC touched the strong resistance area of 25k, the 4-hour RSI formed a bearish divergence, causing the price to retreat later.
However, bulls seem to be viewing this dip as a buying opportunity as it successfully defended the 0.382-0.5 Fibonacci support zone (23.3k-23.7k) and created a bullish pin bar.
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The move also created a hidden bullish divergence in the RSI. A strong sign of trend continuation.
Therefore, BTC is likely to retest the 25k area again.
A break below the 0.382-0.5 Fibonacci support zone would invalidate this outlook and signal a possible drop to $21.5k.
BTC/USDT 4-hour chart | Source: TradingView
The most likely scenario suggests that BTC will breach the $25,000 region. Loss of the 0.382-0.5 Fibonacci support zone (23.3k-23.7k) could lead to a drop to $21.5k. After that, the price is expected to consolidate in the $21,500-$25,000 range for a while.
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According to Azcoinnews