The price of Bitcoin has been consolidating within a very narrow range throughout the past week which was followed by a rejection at $30,000 levels and a subsequent breakdown of the 50-day MA of around $29,000. Until the last trading day, the bearish target was set at around $25,000 but the recent upswing shed light on the possibility of the retest of the 50-day MA levels.
The BTC bulls appear to have dominated the market with strong momentum as they regained control after a sharp pullback. Holding the same momentum, the bulls are now trying to push the prices towards the next resistance level of $28,000. If they succeed to do so, then it may signal the resurgence of a firm upswing that may signal an extended Bitcoin rally.
However, the upswing may still continue for another 3 months as the next upswing is predicted anytime in the next fortnight.
Source: Tradingview
Considering the weekly chart it is quite evident that the BTC price is trading above some strong support levels, above EMA-21, EMA-50 and MA-200 with a strong RSI at 55.5. Hence, on a bullish note, the consolidation may continue for another 1.5 to 3 months before the next breakout.
Besides, in the daily chart, some diverse price actions may be witnessed as the BTC price formed a bullish hammer, some days ago. Moreover, the price continued to trade below this hammer which compelled the price to consolidate more before a breakout. Until the BTC price trades above $25,000, it is considered to be under bullish influence and if it breaks a steep drop below $20,000 is imminent.