Bitcoin Reaches New Highs: Is $30K the Top?

• Bitcoin’s current high is above $28K, but it hasn’t been tested at the important resistance level of $30K yet.
• A clear divergence between the price and the RSI indicator could lead to a short-term correction or consolidation stage.
• If a correction does take place, Bitcoin could retest two major support levels: $25K and a price zone between the 0.5 and 61.8 Fib retracement levels.

Bitcoin Price Analysis

Bitcoin’s impulsive rally has temporarily halted, leading to potential correction or consolidation before the next leg up. The significant resistance at $30K will be an important level to watch as many believe that if this is surpassed, it will signal an end to the bear market.

Daily Chart Technical Analysis

After forming a pullback to the 61.8% Fibonacci entrancement level at $19.6K, Bitcoin initiated a massive rally with its current high being above $28K. However, this is still below the psychological resistance zone at $30K which has not yet been tested.

It is possible that a divergence between price and RSI indicator may occur and lead to some short-term correction or consolidation.

4 Hour Chart Technical Analysis

The bullish momentum from this rally can be seen more clearly on the 4 hour timeframe but recent action suggests that it is decreasing and there may be some corrections soon.

In this case, Bitcoin could retest two major support levels: one being the significant support of $25K and another one being within a price zone between 0.5 and 61.8 Fib retracement levels ($24.4K -$23K).

RSI Divergence

A divergence between price and RSI indicator has been observed in both Daily chart as well as 4 Hour chart increasing chances of corrective phase.