• Bitcoin’s price has broken a significant resistance level, leading to a 14% weekly increase.
• The 200-day moving average (~$20K), however, remains an obstacle for further price action.
• A break above this psychological barrier may lead to a rally towards $25K.
The cryptocurrency market is seeing some relief this week as Bitcoin price broke above a significant resistance level following the Consumer Price Index (CPI) announcement. After a few weeks of consolidation and consecutive green candles, BTC has finally started to move higher.
The Daily Chart shows that the price has broken above both the $18K resistance level and the higher boundary of the large falling wedge pattern. This has led to a 14% weekly increase, and the price is currently trading at $19,200. From a classical price action point of view, Bitcoin could continue to climb towards $25K.
However, the 200-day moving average (~$20K) still remains an obstacle for further price action. This can be seen on the chart as the price has been rejected multiple times in the past few weeks. As long as the 200-day MA holds, the price will struggle to break above this psychological barrier. A break above this level could result in a rally towards $25K.
Looking at the indicators, the Relative Strength Index (RSI) is currently showing significantly high levels, indicating that the crypto is overbought. This could be a sign that the price might pull back before it continues its upwards trend. On the other hand, the Moving Average Convergence Divergence (MACD) indicator is still showing bullish momentum, which suggests that the price could continue to increase in the short-term.
Overall, Bitcoin is currently in a bullish pattern and the next move could be determined by the price action at the 200-day MA. A strong break above this level could lead to a rally towards $25K, while a rejection could result in a pullback towards the $18K support level.