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Bitcoin (BTC) price has experienced a slight decline since reaching its annual high of $44,730 on December 8th. The price has fluctuated above and below this level several times, contending with a long-term horizontal and Fib resistance level. The question remains: can BTC reclaim this level?
Critical Level in BTC
In the weekly time frame technical analysis, Bitcoin has been on a significant uptrend since October and reached its annual high of $44,730 on December 8th. The upward movement was characterized by eight consecutive weekly rising candlesticks, pushing the price above a significant horizontal and Fibonacci resistance. Last week, Bitcoin witnessed its first weekly decline candlestick since the start of the uptrend, indicating a shift in momentum. This decline resulted in a retreat below a key resistance level, which could suggest that the breakout was a deviation.
However, it seems that BTC is regaining its footing and attempting to reclaim this horizontal level. Investors often use the Relative Strength Index (RSI) as a momentum indicator to assess whether a market is overbought or oversold, which helps in making decisions about buying or selling an asset.
“Complex Outlook in Bitcoin”
An RSI reading above 50 and an uptrend are favorable for the bulls, while a reading below 50 indicates the opposite. Currently, the RSI is above the 50 level and in the overbought zone. Even though there has been a slight decline, it has not fallen below the 70 threshold, which could be considered a bearish signal. Crypto investors and analysts at X have mixed views on the future trend of BTC. Income Sharks suggests that the short-term trend is bearish. A cryptocurrency analyst made the following statement regarding the matter:
Quick short, easy invalidation. They will say it’s foolish to expose this, but then they will tell you to invest all your money in a token called BONER on SOL.
