• Bitcoin’s price has surged over the last couple of days and has broken past a key resistance level.
• Currently, the key $30K zone is the next probable target for the price in the short term.
• The RSI indicator should be monitored closely as it is entering the overbought zone, and a bearish pullback or consolidation is probable in the short term.
BTC Soars to Highest Point Since June 2022
Bitcoin’s price has soared over recent days and passed through an important resistance level. Despite strong bullish momentum, there are some signs that caution should be taken.
On the daily chart, Bitcoin’s price rebounded quickly from its 200-day moving average around $20K and has been trending upwards ever since, breaking through $25K resistance level. Its next target is likely to be $30K – if it breaks through this area, it could begin a long-term bull run. However, traders should keep an eye on RSI levels which indicate that a bearish pullback or consolidation may occur soon.
The 4-hour timeframe paints an even more optimistic picture – Bitcoin’s recovery at $20K was followed by breaking two critical resistances at both $23K and $25K respectively. In case of any retracement, these levels will provide support. Additionally, RSI readings are strong in this timeframe but above 70% indicate that a retreat could happen shortly.
Bitcoin seems to have gained momentum with prices rising significantly past major resistance levels in both short and long term timeframes. As always though, traders should remain cautious as RSI readings point towards potential corrections ahead of further gains being made by BTC’s value in upcoming months.