Bitcoin (BTC) price is moving towards a long-term resistance area after it finally surpassed $30,000.
Bitcoin predictions for the coming week are optimistic for several reasons. One of the main factors is that BTC price broke out from a downtrend line that had been in place since it reached its all-time high, and this breakout was confirmed by a long lower wick and a bullish engulfing candlestick in the following week. In addition, the weekly RSI rose above 50 for the first time since June 2021.
As a result, bitcoin price looks likely to continue rising towards the long-term resistance at $31,700 soon. However, if it fails to break this level, there is a possibility that the digital currency could drop back to $24,600.
How long will the Bitcoin (BTC) price breakout last?
Bitcoin daily time frame analysis also gives a positive bitcoin price prediction, with many indicators supporting this conclusion. One of the most important indicators is the movement of the daily RSI, which is currently breaking from a bearish divergence trend line (green), indicating that there is no bearish reversal on the horizon and that BTC is in an uptrend.
Moreover, the price broke a rising resistance line and confirmed that it is support (green icon).
If the price increase continues, the nearest resistance area on the daily time frame is at the $31,800 average price. While this is the most likely scenario for the price going forward, a close below the ascending support line could invalidate this and could lead to a decline towards $25,000.
Finally, the number of short-term waves is also in line with the upward movement. Bitcoin price is in the fifth and final wave of the increase that started on March 10th. At the same time, it is unclear how this fits into the long-term count. However, the current increase is still continuing.
The next most likely area for the price to top would be at $31,777, which was found by the 2.61 outside retracement of the fourth wave. Since this is so close to the $31,700 resistance area, it has a great chance of working as a top.
In conclusion, the Bitcoin price forecast is likely to be an increase towards $31,800. This would be negated by a close below the previous ascending support line, something that could lead to a decline towards $24,000-$25,000.
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In line with Trust Project guidelines, this price analysis article is for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to accurate and unbiased reporting, but market conditions are subject to change without notice. Always do your own research and consult with a professional before making any financial decisions.