(Source: Kucoin BTC/USDT)
Today, Bitcoin is sitting around $27.9k, which is a slightly lower price than we saw last week as we were watching BTC try to reach over $29k. It seems like BTC’s slight retracement from $29k has led to a consolidation period over the past few days where BTC is ranging between the $27k and $28k level.
Consolidation periods are generally periods of time where not much happens with the price of an asset. There are several buyers and sellers pushing each other at equivalent levels, creating indecisiveness in the market without much movement. Over time, this consolidation will eventually lead to a significant movement in price action, and in this case, we pretty much have two options. BTC will soon break over $29k, or BTC will break down to $25-$26k.
Our current RSI is still a tad bit high at around 60, which means that we are seeing some cooldown on the daily chart because we are consolidating, but there is not a significant change in RSI levels.
We are still above our 50-day moving average (blue) and our 200-day moving average (orange) on the daily chart, which still tells us that we are in a bullish uptrend.
Once again, if BTC is able to retrace significantly from $29k and return to the $25k level where the 50-day moving average will meet, this will be a very good point in the charts to find support and build momentum back up from again.
(Source: Kucoin BTC/USDT)
As for our weekly chart, we are seeing a more pronounced rejection of $29k vs. what we had seen last week. The retracing candle is small on the weekly scale, but we are seeing a slight push to go down.
Once again, we are still above both the 50-day and 200-day moving averages, meaning that we are still confirmed in an upwards trend even on the weekly time frame, which is a very good sign. However, as with the previous weeks, we want to see healthy movements from BTC, and the most healthy movement that we can see is a slight pullback to $25k-$26k and then a movement back up to $29k. This is because we are still technically in new territory without much support or resistance besides the $25k level, which we only happened to touch twice within the past two years.