Bitcoin is now trading laterally for nearly a week. However, the coin is still below $30,000 in price. Bitcoin’s technical outlook could point to a rebound in long-term prices.
On the short term price chart however, king coin’s price action remains quite bearish. BTC seems to have settled slightly higher than the $28,000 support level at the time this article was written. The coin has lost 1.2% in 24 hours and showed some improvement over the last week.
The bulls saved Bitcoin after it was traded at $28,000. The positive price change could have been explained by this. Bitcoin is dependent on the $28,000 support line as it could drop to $24,000.
A Day of Bitcoin Price Analysis
At the time this article was written, the cryptocurrency was currently trading at $29600. In the week that has just passed, the cryptocurrency traded at $29,600.
King coin’s crucial support line stood at $28,000. The coin’s overhead resistance was $31,000. Bitcoin volume was still green which means that the bulls are struggling to defend the currency in the marketplace.
BTC could re-attempt the move above $31,000 if the bulls gradually enter the market. Buyers will re-enter market if they reach the $31,000 mark and this will increase the positive price movement in the market.
Technical Analysis
Bitcoin’s technical outlook has painted a bearish picture on the one-week chart. Even with slight improvements over the last 24 hours, the coin’s price action was still weak. Although the Relative Strength Index was close to the oversold area, the coin performed slightly better than being considered oversold.
The slight uptick in activity can’t be considered a good thing. The Moving Average Convergence divergence experienced a bearish crossover. MACD showed red histograms following the bearish crossover. This signal is tied to the sell signal.
Despite the bearish technical outlook, the chart above shows an interesting point. At the time of writing, BTC was near the $29,000-$28,000 price range and that’s positive because this price mark has previously acted as a mark that has fuelled rallies before (blue).
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Bitcoin showed potential for a positive price turn on the 1-month chart. A falling wedge pattern was formed by the Relative Strength Index of Bitcoin. Bullish is a falling wedge pattern. The pattern indicates a trend reversal. BTC could reach $36,000 if the price reaches $31,000.
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