The crypto markets have again shifted back into the consolidated range after experiencing a slight relief. While the momentum continues to remain bearish, the latest plunge was much anticipated. However, the technicals have been raised from being bearish to neutral. Hence, the price action in the next few days may be extremely crucial for Bitcoin and the entire crypto space. This may determine the next course of action.
Considering the long-term perspective, the Bitcoin price continues to remain uncertain, with fewer chances of a bullish reversal in the short term. The BTC price, after an extended consolidation, has formed a bull flag, which largely pushes the prices upwards. However, to accomplish the task, the price is required to fulfill some prerequisites during the coming weekend.
As seen in the above chart, the Bitcoin price is trading within a rising wedge. After the recent rejection, the price is driving back towards the lower support, which is stuck within a range. The price is trading between the major resistance and support levels, which collide with the 50-day SMA as resistance and the 50-day EMA as support. Therefore, any movement above or below these levels may attract huge liquidity or otherwise trigger mass liquidation.
The technicals are currently neutral, which suggests the price may deviate in any direction depending on the volume induced. Hence, a minor pullback could trigger a healthy rebound, wherein the price may drop back towards the support range of $29,132 to $28,626 initially. Further, the price may trigger a strong rebound to reach the upper resistance between $30,143.72 and $30,607.36.
Once, the Bitcoin price reaches these levels, the bulls may drive the price higher towards the resistance of the wedge. This may form a new yearly high above $33,000 that may attract bearish interference, dragging the price lower close to $30,000.
