Is the rally over? Bitcoin falters, blocked by key resistance

▲ 비트코인(BTC)/챗gpt 생성 이미지 ©

After a strong rebound, Bitcoin is blocked by a key resistance zone, weakening its upward momentum, and has now entered a crucial turning point of 'hold or collapse'.

According to investment media FXStreet on April 30 (local time), Bitcoin (BTC), after its recent upward trend, reached a key resistance zone between $77,183 and $83,842, after which its upward speed slowed down, entering a consolidation phase. This zone is where the 38.2% retracement level of the October decline last year overlaps with a bearish gap formed in February, technically forming a strong supply zone.

Initially, a technical improvement signal appeared with a breakout above the descending channel, but after entering the resistance zone, the upward momentum rapidly weakened. Currently, sell signals are also appearing in daily indicators, and the market's center of gravity is gradually shifting downwards. With the recent downward trend continuing, the short-term rebound structure is said to be put to the test.

The key is the $75,343 support level. This zone is the bottom of the current consolidation range and a turning point that determines market direction. If breached, two negative signals are confirmed simultaneously: one is a downside breakout of the consolidation range, and the other is the previous breakout of the descending channel being proven a 'false breakout'.

In this scenario, the minimum target downside range is set at $71,331, and if market sentiment further deteriorates, there is a possibility that the downside range could extend to approximately $68,225, which is the bottom of the ascending channel. Conversely, if this support level holds, the existing rebound structure will be maintained, allowing for further upward attempts.

The media analyzed that the current market has entered a phase where it is not simply determining whether to rise, but rather verifying whether it can maintain its structure after a rise. In other words, momentum alone is not enough; the actual buying power's ability to defend the support level is the key variable that will determine the future direction.

*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*