Overview of Article
- Bitcoin is attempting to break through the $30K resistance, which could result in bullish bias for cryptocurrency.
- Technical analysis shows that a double-top pattern was formed at this level, signaling a potential reversal.
- If Bitcoin fails to break through the $30K resistance, it will target the 100-day moving average of $27,900.
Bitcoin Attempting Breakthrough Resistance Level
Bitcoin is currently facing challenges in breaking past the significant resistance at $30K. If successful, this breakthrough would likely result in a sustained bullish bias for cryptocurrency over the medium term.
Double-Top Pattern Forms Signaling Reversal
Analyzing Bitcoin’s technical indicators reveals that upon reaching the $30K level, it entered a consolidation phase and weakened its bullish momentum. The price has also formed a double-top – a bearish reversal pattern – at this level, indicating a potential short-term reversal. Additionally, the RSI indicator on the daily chart indicates an overbought market condition which could act as further catalyst for such a scenario.
Target Price: 100-Day Moving Average of $27,900
In case Bitcoin faces rejection within this crucial price range and fails to break past the $30K resistance level, its first target will be the 100-day moving average of $27,900. This is indicated by higher highs and higher lows on its 4-hour chart throughout its recent bull run.
Overall, Bitcoin appears to be struggling to breach its current resistance level despite indications of healthy and robust upward momentum on its 4-hour chart. A failure to do so may indicate that it will soon target its 100-day moving average at around $27,900 before continuing on with any further bullish trends in medium term.