After a deeper analysis of the daily chart, we find that the market has experienced a long period of correction and finally the price has found solid support in a key area.

This key area brings together several important technical indicators, including the 100-day moving average at $3,050, as well as important price points at $3,190 (0.5 Fib level) and $2,972 (0.618 Fib level).

This area is important because it attracts a lot of buying demand, which may effectively curb further downward pressure from sellers in the market. In addition, the slight bullish divergence between the price and the RSI indicator indicates that the market may be about to usher in a bullish rebound, which may very well target re-entering the important $3,500 mark. However, despite these bullish signals, if the price unexpectedly falls below this key support area, it may trigger a chain reaction that will lead to a further decline in the market to the $2,500 area where the 200-day moving average is located.

On the 4-hour chart, we can observe the market dynamics in more detail. After months of consolidation and adjustment, the market has formed a descending wedge pattern. After a period of sharp decline, the price has touched the lower boundary of the wedge and the support area around $3,000.

Although the market is in this key range, underlying buying pressure has allowed prices to enter a less volatile consolidation phase. This reflects the fierce competition between buyers and sellers. However, the significant divergence emerging between the price and the RSI indicator on the 4-hour time frame shows increasing buyer power, which increases the likelihood of a bullish rise in the medium term. In this case, the next price objective will be a break above the key resistance level at $3,500. Conversely, if the price breaks below the current support, then the market may slide further towards the $2,700 support.

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