Bitcoin price has been trading within a predefined range for the past few days, which has hampered volatility significantly. The bulls refrain from triggering a notable rally. Market conditions also remain quite hazy, due to which the rally continues to trade near the newly formed support at $30,000. However, the price continues to show decent chances of a bullish breakout, but a bearish impact is also emerging. this may drag the price close to $29,000.
In the short term, the price of BTC is trading along the descending trend line as the resistance levels run out. On the other hand, the support levels remain the same at $30,000, due to which the price compresses. Over the next few days, if the rally maintains a similar trend, excessive compression could lead to a massive blowout.
However, the direction of the explosion may certainly not be known as bullish and bearish possibilities emerge.
Short-term BTC price rebounded from the immediate lower support at $29,857 and is heading towards interim resistance above $31,000. As the price hits one of the key resistance levels at $31,029, the bulls are bound to spark a nice rally. This could pave the way for the price to rise towards the next level near $32,000, which seems less likely.
The weekend is fast approaching and hence the volatility is also expected to increase. Here, the RSI maintains a significant rise while the MACD is closer to undergoing a bullish crossover. Therefore, the price could again rise above $31,000 over the weekend, but could again face rejection, which could keep the rally in a tight range.
