• Bitcoin’s price rallied after breaking above a significant resistance level.
• The $30K area is an important mid-term resistance level that needs to be broken for a bullish phase.
• The 4-hour chart indicates that a consolidation or pullback may happen before the $30K level is reached.
Bitcoin Price Rallies
Bitcoin’s price has seen a massive uptrend over the past week, following a V-shaped rebound from the 200-day moving average located amid the $20K mark, followed by a decent breakout above the $25K resistance level. Currently, the price is heading towards the key $30K area, a mid-term resistance, in which a breakout above it would likely lead to a bullish phase in the coming months.
RSI Indicates Potential Pullback
The RSI indicator has entered the overbought area and is signaling a potential pullback or consolidation in the short term. In this case, the $25K area could be tested again as it now acts as a support level. The 4-hour chart also indicates that a consolidation or pullback may happen before the $30K level is reached as its RSI indicator signals bearish divergence between recent price highs.
$25K Level Could Provide Support
Although there are signs of potential corrections on both time frames, should these occur they could be limited to retesting of previous levels such as $23K and/or $25K while being supported by them respectively. In addition, these corrections could lead to increased buying pressure near these levels if buyers step in and push Bitcoin’s price higher again towards reaching its next major target at around $30K.
Potential Bullish Phase Coming Up
In conclusion, if Bitcoin manages to break through its current mid-term resistance at around $30k then it could open up another bullish phase for BTC with further targets potentially set much higher than its all time high at around ~$42k – although this will depend on market sentiment and overall investor confidence in BTC’s future prospects going forward too.
Conclusion
Overall, Bitcoin’s current rally appears to have some further upside left given current technicals but traders should always remain vigilant for any unexpected news or developments that might affect prices – either positively or negatively – in order for them make informed trading decisions accordingly alongside their own risk management strategies when investing into crypto assets such as Bitcoin and other popular altcoins too.