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


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.

Related articles

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.