Bitcoin (BTC)’s price fell in 2024 but rebounded last week with a spirited rebound. BTC is trading in close proximity to the confluence of several resistance levels. Let’s figure out what to expect – a bullish breakout or a pullback.
Bitcoin is Regaining Ground Levels
The weekly timeframe shows that in the second week of January the price was rejected by the 0.618 Fibonacci retracement level. This resulted in the formation of a bearish weekly shooting star candle, characterized by a very long upper wick. After the rebound, BTC sank below the Fibo support level of 0.5 correction. However, starting from Feb, 1st it began an upward movement and has almost won back this level.
Despite this rebound, the weekly relative strength index (RSI) is still sending negative signals. It has been declining and has dropped below 70 after previously entering overbought territory. All these are signs of a bearish trend.
What do Analysts Say?
Cryptocurrency traders and analysts on Platform X have mixed views on the prospects for BTC. For example, CryptoMichNL assumes that the price will rise to $50 thousand. He wrote:
#Bitcoin consolidating and acting in a boring manner.
Probably it will look for a higher low after which we’re having a slight pre-halving push to $48-51K. pic.twitter.com/eu0DE4kYmN
— Michaël van de Poppe (@CryptoMichNL) February 1, 2024
XForceGlobal shared the same opinion, although he uses Elliott wave theory for his conclusions. CredibleCrypto believes that the price has started a new trend that will take it to new highs. However, in the near future there should be a short-term pullback.
BTC forecast: Should we Expect New Lows?
The daily timeframe shows mixed results, on the one hand, the price recovered above the horizontal support area of $42 thousand after deviation below it. However, the rate still remains below the Fibo resistance level of 0.5 correction at $43,800.
In addition, there is a strong resistance zone around $45,100 formed by the 0.618 Fib retracement level and the horizontal resistance area. Finally, the daily RSI is still facing resistance from its bearish divergence trendline and is near the 50 mark. To initiate a bullish trend reversal, this barrier must be taken. If BTC breaks above $43,800, it could rise 5% to resistance at $45,100. Meanwhile, a rollback from the Fibo resistance level of 0.5 correction could trigger a fall in Bitcoin by 5% to $41 thousand.
