• Bitcoin’s price has been trending downward for several weeks and is testing a key $30K resistance level.
• The 50-day moving average has been broken to the downside and could lead to a drop to $25K in the short term.
• A bearish breakout from the bullish flag below $30K could lead to a test of the $25K support level.
BTC Tests Critical Resistance
Bitcoin’s price has continued trending downward for several weeks, making lower highs and lows. Even so, hope remains that the potential for a bullish rally is not yet over. Currently, Bitcoin is testing the key $30K resistance level with its 50-day moving average located around the $28K mark having been broken to the downside; potentially leading to a drop to $25K in the short term.
Technical Analysis
On the daily chart, Bitcoin is currently trading below its 50-day moving average which would act as resistance until it trades back above it. If this happens then it would likely target $25K as this is a strong support level that bulls could count on. The 200-day moving average, located at around the $23K level, could also be tested if $25K were to break down. It’s important note that while Bitcoin remains above this line then technically it is considered in bull market.
Bullish Flag Formation
On the 4-hour chart we see that Bitcoin has been gradually declining and forming a large bullish flag below the key resistance of $30K; these patterns are generally known as bullish continuation patterns if they’re broken through to upside. However due recent rejection from this same level, it’s likely that we will test lower boundary of pattern once more in coming weeks before any possible breakout can occur.
Risk of Bearish Breakout
A bearish breakout from this channel and breaking down throught he critical support at$25k could signal further losses for Bitcoin in near future – potentially targeting 200 day moving average which currently stands at around 23k levels if 25k were break down enough times on daily basis .
Conclusion
In conclusion BTC continues trend downwards but there still remain hopes of potential bullish rally taking place soon . Technical analysis shows us that if price breaks out of bullish channel at 30k then we may be looking at 25k being targeted next – however bearish breakouts also remain possibility so traders should remain vigilant and keep an eye on where prices go during upcoming sessions .