Bitcoin price appears to be resuming the bull cycle after climbing above $ 34,000

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Bitcoin (BTC) has consolidated since its recent all-time high of $ 42,000 and is back above $ 34,000 at the time of writing. The current correction is currently already at 30% as the Bitcoin price has risen several times out of the $ 30,000 region.

However, it remains to be seen whether the price of Bitcoin will accelerate again or whether the BTC price will need more consolidation to build in strength.

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In 2020 there were several accumulation periods during which the price of Bitcoin fluctuated for a few months. Such a time is indeed required to build strength for continuation. The main question is whether such a distance-bound construction now gives the same results.

Clear downward trend since $ 42,000

BTC / USDT 3-hour chart. Source: TradingView

The three-hour chart is showing a bearish trend from the high of $ 42,000. This structure is formed using the bottom ups and downs. In this example, the lower heights are marked in the gray fields and are important.

Hence, for a bullish reversal, the price of Bitcoin must break the critical resistance zone at $ 34,000- $ 34,500, as this is the previous support. If this level does not switch to support again, the market will consider it a support / resistance switch and further downside moves are likely to occur.

Bitcoin’s price has tested the support area at $ 30,000 for an extended period of time. The more often a level is tested, the weaker it becomes. Add to this the weaker bounces from the $ 30,000 region, which have resulted in lower highs.

Therefore, if $ 34,000 isn’t flowing into support, retesting the $ 30,000 zone should point to further weakness and put $ 24,000-26,000 on the table.