• Bitcoin has reached the $24K region, but failed to move above it.
• A prolonged bearish divergence between the price and RSI indicator increases the likelihood of a short-term correction.
• There is a static support level at $22.3K and many sell-stop orders below this level providing adequate liquidity for the market to grab before initiating the next move.
Bitcoin Struggles With Significant Resistance
The market has been struggling to push above the significant resistance level of $25K, causing Bitcoin’s price to slowly decline. This raises the possibility of a correction before another rally can take place. The 200-day moving average and broken trendline may also be retested before any upward movement in price occurs.
Daily Chart Technical Analysis
On the daily timeframe, $24K-$25K is providing significant resistance for Bitcoin as it has been doing so for the last eight months. Despite recent bullish activity pushing prices up to this area, buyers have failed to break through this barrier leading to rejection by sellers. Additionally, a bearish divergence between price and Relative Strength Index (RSI) suggests that a short-term correction could be on its way soon.
4-Hour Chart Technical Analysis
The 4-hour timeframe shows that after falling below the flag’s lower boundary, BTC tested the trendline which completed a pullback pattern signaling its validity. However, momentum was weaker than expected causing volatility in prices. Moreover, there is now a static support level at $22.3K with many sell stop orders below it providing liquidity for traders if they decide to initiate another move upwards towards $25K or beyond..
Short Term Outlook
In conclusion, Bitcoin appears to be facing difficulty breaking through resistance levels and may need further correction before making any significant advances in price due to bearish divergences on both daily and 4-hour charts being present at this time. Sell stop orders are also able provide sufficient liquidity should traders choose to make any moves in either direction within these timeframes..
Overall, It’s likely that Bitcoin will experience more short term corrections until another surge can occur on its way toward reaching new all time highs past $25k or higher levels over time as more investors enter into crypto markets worldwide