Bitcoin Price Set Its Highest Weekly Close In 10 Months, Can BTC Break $30K?
Bitcoin set its highest weekly close since June after closing the day at $28,283 on April 2. The major crypto was steady over the weekend after closing March near $28,500, a 10-month high.
Bitcoin price weekly chart
However, the Bitcoin price flashed red on Monday, changing hands at $27,795. This was a 2.67% drop in the last 24 hours, according to data from CoinMarketCap. An important resistance level is at the $28,500 mark. This is a historically significant barrier that is also playing out in the current halving cycle.
Note that Bitcoin has been consolidating below this level for the past 10 months. Traders expected a strong weekly close to cement the recent gains of the flagship cryptocurrency. Unfortunately, the April 2 close fell short of the $28,750 many had expected.
However, the technical setup reveals that Bitcoin remains bullish.
Bitcoin price needs to reclaim $28,500 to sustain the uptrend
BTC is trading in a third straight bearish session on Monday, as shown on the daily chart below. Apart from the 4.75% pullback currently being experienced from Thursday’s high above $29,000 at the current price, the Layer 1 token has had a bullish outlook since March 9th.
From the chart below, BTC is trading below its weekly close of $28,283, the rising but accelerating trend line, and the previous stubborn resistance around $28,500, highlighted by the upper orange band.
The Moving Average Convergence Divergence (MACD) indicator is turning down and has sent a call to sell Bitcoin as shown on the same daily chart. This happened on April 1 when the 12-day exponential moving average (EMA) – the blue line – crossed below the 26-day EMA – the orange line. This suggested that Bitcoin may continue to correct in the short term.
As such, a break below the lower orange band of $27,000 would spell doom for the largest crypto by market cap, with the first line of defense emerging from the $26,000 psychological level or the 50-day simple moving average around $24,900.
BTC/USD Daily Chart
Conversely, the technical setup shows that Bitcoin is mostly bullish. Note that the price is above all the major moving averages, starting with the 50-day simple moving average (SMA) (the line in yellow), the 100-day SMA (the line in red) and the 200-day SMA (the line in purple), which are a bullish signal.
Buyers face the toughest challenge at the moment, breaking the seller’s congestion level of $28,500 is likely to pave the way for a rally to $30,000. To do so, they must start by maintaining the $27,000 support to avoid any chance of a pullback as described above.
A break and hold above $30,000 is crucial for the continuation of the uptrend, and bulls need to capitalize on the momentum created by the pioneering cryptocurrency since the beginning of the year to possibly bring $35,000 into the picture.
