- Bitcoin (BTC) price has been consolidating since the first bullish refusal on January 25. The direction of the short-term Bitcoin trend is not clear, but a jump towards the $ 33,700 area seems to be the most likely scenario.
Bitcoin (BTC) price has been consolidating since the first bullish refusal on January 25. The direction of the short-term Bitcoin trend is not clear, but a jump towards the $ 33,700 area seems to be the most likely scenario.
Instability continues in Bitcoin (BTC)
After the comeback on January 25, BTC showed some strength by forming a candlestick with a long wick and a slightly bullish close. However, suppositories on either side can be considered a sign of indecision. This means more consolidation before a significant move in one direction.
The technical indicators are bearish and BTC is trading just below the $ 33,700 resistance area. Conversely, the closest support area is at $ 29,000.
Possibility to test resistance levels
Bitcoin is trading in a parallel descending channel, which is usually a corrective structure. Currently, BTC is facing resistance from the middle of the channel and a possible descending resistance line that has been confirmed multiple times up to this point.
BTC will have to rise above $ 33,200 to both break resistances and break decisively. Technical indicators are slowly bullish but have not yet confirmed the possibility of a breakout.
The two-hour chart shows signs of reversal as the RSI has created some uptrend. Before deciding on a breakout or breakdown, it would make sense for BTC to at least try the resistance line one more time.
While the long-term count is in a bearish trend, with a bearish forecast towards $ 28,000, the medium-term number indicates that another upward move is likely before BTC drops towards the target.
The best case scenario will make the bottom wave C (orange) rise from $ 38,000 to the top of the channel. However, it is entirely possible for the lower wave to reach a lower level as the movement is still in its initial phase.
The most recognizable part of the move is irregular irregularities since yesterday, suggesting that BTC has not corrected yet. Therefore, it would also make sense for BTC to try yesterday’s lows before potentially rising again. It is very likely that the aforementioned subwave C has an ending diagonal.
While the direction of the trend is unclear, the most likely scenario suggests that Bitcoin will bounce once again before a significant drop occurs.