A potential breakout of the downward sloping resistance trendline by BTC price could trigger a sustained rally towards $30,000.
The ongoing recovery in Bitcoin price has encountered resistance near the $28,300 mark, which coincides with the long-term descending trendline. Despite the bulls’ two recent attempts to break above this level, each effort has been met with significant resistance, as evidenced by the clear price rejection candles. This pattern suggests that sellers are still in the driver’s seat for now. Does this increasing pressure indicate a potential correction is imminent for Bitcoin?
Overhead supply could drop to $25,000
A bullish breakout from the upper trendline could signal the end of the corrective trend
Bitcoin Fear and Greed Index is at 49%, reflecting a neutral stance among market participants
Bitcoin’s intraday trading volume was $10.7 billion, up 18%.
BTC’s price trajectory has been decidedly bullish since mid-September, rebounding from support at $25,000. It has gained around 12.5% in value over the past month and is currently trading at around $28,017.
However, this bullish pace was stalled near the $28,300 mark, an area exacerbated by selling pressure from the aforementioned descending trendline. This trendline has been a formidable barrier for about 90 days, resisting upward moves on four different occasions.
If sellers remain in control, a near-term correction in Bitcoin price seems justified. A decisive break above the emerging support trendline currently located around $27,200 could result in a fall towards the psychological support level of $25,000.
Will BTC price return to $30,000?
Despite a sharp correction that began around October 2, BTC price has firmly defended the $27,230 level, which shows that bulls have not given in and still intend to break through the established resistance level. A daily candle close above this trendline will give a vote of confidence to the bulls and could mark the start of a new uptrend. In this bullish scenario, the dynamics following the breakout could push the coin’s price above the $30,000 mark, targeting a resistance zone close to $30,800 and subsequently around $32,000.
Bollinger Bands: The rising upper band of the Bollinger Band indicator highlights the still aggressive bullish momentum.
Relative Strength Index: The steady rise in the daily RSI slope reflects an attempt by buyers to extend the recovery trend.
