The price of bitcoin has rebounded in recent weeks, climbing back above $30,000. However, some analysts are warning that the rally may be running out of steam as bitcoin faces technical resistance.
According to Ali, an analyst on Twitter, the TD Sequential indicator has presented a sell signal on the daily bitcoin chart. “Watch out for a potential BTC correction to $29,500 or even $28,630!” Ali cautioned. The TD Sequential is a technical analysis indicator that identifies overbubbled and oversold conditions. The sell signal suggests bitcoin could be due for a pullback after its sharp rise.
Meanwhile, Credibull, another crypto analyst on Twitter, has a more optimistic outlook. Credibull noted that bitcoin closed the week above a key level that led to a massive liquidation event (not seen since FTX collapse) when bitcoin broke below it nearly two months ago. “If you’re lucky we get a clean retest of the green zone before continuation,” Credibull said, referring to a price zone between $30,000-$32,000.
The mixed analyst views highlight uncertainty around bitcoin’s next move after its recent recovery. A correction from current levels near $30,500 would not be surprising given bitcoin’s history of volatility. However, the crypto could also continue higher if it can maintain support above key technical levels. Traders will be closely watching to see whether bitcoin breaks out or breaks down in the days ahead.
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