Bitcoin’s (BTC) relief rally from the $20K zone appears to be ending, as the $24K resistance level keeps rejecting the price repeatedly. The 100-day moving average also acts as a strong resistance near the same level.
The Daily Chart
The 50-day moving average that is currently pegged around the $22K level, may offer some support and initiate a rally above the $24K resistance zone. In that case, a quick surge towards the $30K supply zone would be highly likely.
Nevertheless, a bullish breakout above the 200-day moving average that is currently trending around $33,000, would be important to call the start of a new bull market. On the flip side, in case the 50-day moving average fails to hold the price steadily, a retest of the $17K-$20K support area would be highly likely in the near term.
The 4-Hour Chart
On the 4-hour charts, the price seems to have been rejected from the higher boundary of the big bearish flag pattern for the fourth time. The RSI indicator indicated a massive bearish divergence between the last few highs, pointing to a possible reversal.
The price has now broken below the bullish trendline shown on the chart and appears to be pulling back for a retest and eventual continuation towards the lower boundary of the flag.
In that case, it would be unlikely that the price of Bitcoin rebounds from the lower trendline, and a bearish breakout and continuation towards the $17K level and lower would be the most possible outcome.
