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Technical Analysis: BTC Creates Bullish Pattern, Price Aims For $30k

Bitcoin has created a bullish pattern in the high time frame. The price may continue to rise this week.

Bullish pattern

Bitcoin broke out of a descending wedge pattern in November with a large bullish candle. This move also helped BTC break the long-term downtrend structure by breaking the $21.5k resistance level and touching the next resistance level at $25k.

After the correction, Bitcoin successfully flipped the $21.5k level into support and created a bullish engulfing pattern. This is a strong uptrend pattern, indicating that the bulls have control of the price action.

Therefore, BTC may breakout the $25k resistance level in the near future.

The RSI indicator is trending upwards and above 50, supporting the possibility of a breakout for Bitcoin. If successful, the next resistance level can be found at $30k, which was created by the previous support level.

btc-bullish
BTC/USDT weekly chart. Source: TradingView

Short-term outlook

After BTC hit the strong resistance level at $25k, the 4-hour RSI indicator generated a bearish divergence, causing the price to drop afterward.

However, the bulls seem to be viewing this dip as a buying opportunity, successfully defending the Fib support zone of 0.382-0.5 (23.3k-23.7k) and creating a bullish pin bar candle.

This move also formed a hidden bullish divergence in the RSI indicator. A strong signal of a continuation of the uptrend.

Therefore, BTC is likely to revisit the $25k level once again.

Dropping below the Fib support zone of 0.382-0.5 will invalidate this prospect and indicate that the price may drop to $21.5k.

btc-bullish
BTC/USDT 4-hour chart. Source: TradingView

Conclusion

The most likely prospect indicates that BTC will break through the $25k level. Losing the Fib support zone of 0.382-0.5 (23.3k-23.7k) may cause the price to drop to $21.5k. Afterward, the price is expected to consolidate in the range of $21.5k-$25k for a period of time.

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