Since the November 21 low, bitcoin has started a slight rise. This allowed it to regain 9% of its value. This momentum could project the price of bitcoin to $29,000. Here’s why…
BTC at $29,000
Bitcoin price seems to be slowly recovering from the drop suffered during the week of FTX’s collapse. Indeed, this leader in cryptos by capitalization has lost 26% in value during this week. But after touching the $15,500 support, the buyers fought back. A slight rally ensued, allowing bitcoin to rally 10%. Currently, BTC is moving inside an uptrend channel that appears to be leading it over the $18,500 resistance.
This channel started on November 22, when the price bounced off the $15,500 support. At this rate, Bitcoin could hit $29,000. Indeed, several technical signals support this thesis. First, note that the $15,500 support was a critical long-term level. A rebound in this area could then initiate a long-term bullish rally. Additionally, the RSI appears to be following an uptrend line. The only hurdle for the bulls is the $18,500 area. If the price breaks through this resistance, bitcoin is highly likely to start a bullish rally to $29,000.
In the event of a decline…
The fall in bitcoin price during the FTX crash was accompanied by great volume. This means a strong entry of sellers. Thus, it could be that the recent rises are just corrective moves. In this case, we can consider the return of the price towards $18,500, before falling again. If the price breaks through this level, resistance is found at $20,000.
The breakout of these two resistance zones will confirm the bullish scenario, where bitcoin could hit $29,000.
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