Channel Break, Crucial Support and Resistance Rejection

In the past 24 hours, Bitcoin underwent a retracement towards the lower boundary of its upward channel, breaching that level. Nevertheless, the $30,180 price level, which held significant importance in the past and is now considered a crucial support level, allows for an update to the ascending channel, thereby encompassing the price within its range once again. Consequently, if the lower boundary of the channel is breached, this static support will also be compromised. A breakdown of the current support and a decline below the $30,000 range could potentially lead to a correction in Bitcoin's price. Conversely, breaking the downward trend line within the channel could serve as a positive indication, suggesting potential price growth towards the resistance level of $32,000. Should the lower boundary of the channel be breached, the primary support targets would be $29,500 and $28,276.

On the daily timeframe, Bitcoin's price action disregarded the FVG gap between $29,600 and $28,400. Additionally, the price action is currently experiencing rejection from its horizontal resistance level, which is identified between the $31,000 and $30,500 levels. This rejection coincides with a weak volume profile, indicating a lack of substantial trading activity.

Nevertheless, despite the resistance encountered, all Exponential Moving Averages (EMAs) signal a support level for the price action.

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Comment:

Yesterday, the Bitcoin chart experienced an uneventful day with only a brief period of selling pressure that tested the support level around $30,000. Despite a strong bearish candle, the price did not close below this range. There is a possibility of a price correction for Bitcoin, which, if observed, could lead to a decline in two stages. In the first stage, the price may drop to approximately $28,700, followed by a potential second stage decline to the range of $27,900-27,700.

Comment:

The scenario of Bitcoin's upward movement will only be activated if the resistance level around $30,670 is successfully surpassed.