Investors in the United States have been buying a lot of bitcoin (BTC) lately because big institutional players are getting involved. People thought the market would get really crazy, but it didn’t happen. Before the rally, the price of BTC briefly went up to $31,300 and then went back down to $30,700.
According to a new video by Crypto World, Bitcoin is currently encountering significant horizontal resistance at around $30.5K, as observed from previous candle closes.
However, for a confirmed breakout, Bitcoin needs to see the price surpass the $31,000 level, which is the previous candle high from April. Additionally, $31,000 is a crucial technical level to monitor.
He highlighted that the price is still testing the resistance zone between $30,000 and $31,000. Moreover, the daily RSI recently entered overbought territories, indicating short-term overheating.
Although there is still room for further reset, it would be beneficial for the larger bullish trend to see the RSI reach more neutral levels. Meanwhile, the daily Bitcoin MACD indicates a loss of bullish momentum due to the price encountering significant resistance.
Short-term Breakout Potential:
The analyst said that on the two-hour Bitcoin chart, a small symmetrical triangle pattern has formed. He noticed a small downside wick below the support level around $30.1K. However, on the previous day, the price rebounded from $30.1K towards the resistance level at $30.5K to $30.6K.
Technically speaking, the breakout is valid according to him and he added that a confirmed break back below 30.5K would invalidate this breakout and return the price to a neutral range.
Bitcoin’s price has experienced a significant 85% surge since the beginning of this year, surpassing the performance of many other cryptocurrencies in the market.
This upward movement can be attributed to the increased participation of influential financial players such as BlackRock, Fidelity, and Citadel, who have shown a growing interest in Bitcoin.
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