• Bitcoin’s price has been trending downward for several weeks, leading to lower highs and lows.
• On the daily chart, the price has been dropping recently after failing to break through the key $30K resistance level, with $25K being the most likely target in the short term.
• The 4-hour chart shows a large bullish flag below the $30K mark, testing the $27,500 resistance level with a bearish breakout from this channel and the $25K support level being possible.
BTC Tests Critical Resistance
Bitcoin’s price has continued trending downward for several weeks, making lower highs and lows. Even so, hope remains that there is still potential for a bullish rally. On the daily chart, Bitcoin is currently trading below its 50-day moving average of around $28K and would act as resistance until it trades below it. There is also strong support at around the $25K level which could be tested if further declines occur. Meanwhile on the 4-hour chart there is a large bullish flag pattern forming below $30K with Bitcoin testing its resistance at around $27,500. A bearish breakout from this channel and from the critical support level of $25K may be possible in coming weeks.
Key Technical Levels
The key technical levels to take note of are:
• The 50-day Moving Average (MA) located near around $28K acting as resistance until trading falls below it;
• Strong support at around the $25k level;
• A large bullish flag forming on 4-hour chart beneath 30K with its resistance near 27.5k;
• If broken down, then 200-day MA located near 23k could be tested.
Are We Still In Bull Market?
As long as Bitcoin’s price remains above its 200 day moving average located near 23k then technically this is still considered a bull market even though prices have dropped recently. This means that hope remains for a potential recovery or rally in prices even when momentum appears to be heading downwards in general terms during recent weeks or months..
What Could Happen Next?
The next move will depend on whether Bitcoin can break through key resistances such as those mentioned above or not – if these are breached then we could see an uptrend in prices but if not then further declines towards 25k or even towards 23k could be seen instead leading to bearish sentiment dominating once again..
Conclusion
In conclusion although Bitcoin has been struggling lately there is still potential for a recovery depending on what happens at key technical levels over coming days or weeks – only time will tell!