BTC Technical Analysis: Retest Phase Intimidates Weekly Gains 

Key Technical Points:

Past Performance of BTC

As we mentioned in our last analysis, The BTC prices exceed the consolidation range in the daily chart with a jump of 22% over the week. However, the breakout rally struggles to surpass the $25K mark resulting in a shooting star candle, displaying an increase in selling pressure. This bearish turnaround of events makes it difficult for the prices to sustain above the 50-day SMA and might shortly break it to retest the broken range at $22K.

Source - Tradingview

BTC Technical Analysis

BTC price chart shows a significant trading volume, influencing the start of a retest phase that will damage the week-long gains. Hence, the short-term traders can find profit booking a viable option to reenter the post-retest reversal.

The RSI indicator takes a neutral standpoint as the slope turns sideways in the nearly overbought zone teasing a potential reversal shortly. Hence, RSI dipping below the halfway line will mark the retest phase.

Furthermore, the MACD indicator displays a solid growth in buying pressure over the week but the last night’s dump is yet to show in the fast and slow lines. Hence, the indicator remains bullish on the upcoming trend in Bitcoin.

In a nutshell, the BTC technical analysis projects a high likelihood of a bullish trend upon completing the retest.

Upcoming Trend

Considering the Bitcoin(BTC) prices sustain above the 50-day SMA, traders can expect a positive continuation exceeding $25K to reach the 100-day SMA. Hence, the uptrend shows a potential of 20% growth in the coming weeks or months.

However, a dip under the 50-day SMA will cut the weekly gains in half and retest the $22K mark.

Resistance Levels: $25K and $28K

Support Levels: $22K and $20K