• 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.
• The key $30K area is now in sight as a mid-term resistance that, if broken to the upside, could lead to a bullish phase in the coming months.
• However, RSI indicators on both daily and 4-hour charts point to potential pullback or consolidation in the short term.
Bitcoin Price Rally
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 and followed by a decent breakout above the $25K resistance level. Currently, Bitcoin’s price is heading towards another critical level of $30K which could push it into a new bullish phase if it breaks through.
Daily Chart Analysis
On the daily chart, Bitcoin’s price had seen a massive uptrend after breaking through its significant resistance level at $25K. However, before it can fully enter into its bullish period, it must break through another important level of $30K. The RSI indicator has entered into an overbought position signaling potential pullback or consolidation in short term. In such case, support will likely be found at around $25K again as it now acts as a support level.
4 Hour Chart Analysis
In terms of 4 hour chart analysis, Bitcoin’s price had been rising almost vertically with clear bullish market structure being seen throughout this time frame. Although it broke through its resistance at $25K before continuing to rise up further – RSI indicator on this time frame also shows bearish divergence between recent highs that may lead to possible consolidation or pullback eventually resulting in further retesting of support levels at around $23k and potentially even lower than that.
RSI Indicators
RSI indicators on both daily and 4-hour charts point to potential pullback or consolidation in short term despite current bullish trends being experienced by Bitcoin so far this week – mainly due to its overbought situation on both these time frames indicating need for some kind of correction before entering into full blown bull run phase again soon afterwards.
Conclusion
In conclusion – Bitcoin’s current rally is still going strong but there are signs of possible pullbacks or consolidations along way due to RSI indicators showing bearish divergence between recent highs on 4 hour chart and reaching into an overbought position on daily chart as well – suggesting need for some kind of corrective action prior entering next wave up towards key mid term resistance levels at around 30k range soon enough before 2021 ends completely .