The price of the mother of cryptos is currently sitting at critical support which could be a potential buy zone for the bulls. It is possible that a 35% rebound is imminent for bitcoin (BTC).
Bitcoin (BTC) on critical support
On a weekly scale, the price of BTC has been on an uptrend since the start of the year, moving in an ascending channel. On April 10, the price reached the upper part of the channel, marking the high of the year at $31,035. Subsequently, BTC underwent a 13% correction, approaching the lower part of the channel, which could be a major support. If bitcoin (BTC) reacts positively to this support level, we can expect a rebound towards the upper part of the channel.
This hypothesis is reinforced by the fact that this lower part of the channel lines up with the 200 week moving average. Moreover, a major support at the weekly level ($25,401) also lies nearby. If this rebound is confirmed, bitcoin (BTC) could experience a rise of 35%. The crypto would thus break above the $35,000 mark and move back towards the upper part of the channel.
Daily scale analysis
On the daily level, the bullish thesis will only be confirmed by observing the price movement on a lower scale. Confirmation requires a descent towards $25,401, accompanied by a divergence of the RSI, followed by a breakout of the $30,000 level. Indeed, if bitcoin (BTC) drops all the way to $25,401 with a divergence in the RSI, this would indicate a pushback from bullish investors. The breakout of the $30,000 level would subsequently mark a change in medium-term structure.
In this scenario, the major support at $25,401 could be an interesting buy zone. If bitcoin (BTC) drops all the way to $24,900, further declines could be seen. So, the next support levels to watch would be $23,000 and $21,400, in this situation. However, for now, it might be wise to consider the possibility of a major rebound.
Admission: $25,401;
Stop: $24,900;
Goal 1: $30,000;
Goal 2: $36,000.
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