Bitcoin didn't show any interesting movements last week. After a rapid increase of $6,000, the cryptocurrency stabilized and has been trading just below the $31,000 level for the past 14 trading days, which acts as a strong resistance. Additionally, $31,000 is the most recent local high in the 24-hour timeframe, making it significantly important. In other words, if this level is surpassed, the chances of further growth for Bitcoin will sharply increase. It's important to note that the recent upward movement began within the range of $24,350 to $25,211, as we previously highlighted. From a technical perspective, Bitcoin has moved almost perfectly in recent months.
The past three working days have been rather uneventful regarding macroeconomic and fundamental factors. There was nothing to draw the attention of traders, including cryptocurrency traders. Overall, Bitcoin has continued to rise over the past two weeks. It has tested the $31,000 level four times but failed to initiate a correction. Today, crypto bulls attempted to break through this level, but bears prevented them from doing so. Bitcoin experienced rapid fluctuations within the day.
The fact that Bitcoin hasn't initiated a correction from the $31,000 level indicates the strength of the bulls rather than the bears' intention to start a new downward correction. Buyers gradually overcome the strong resistance level, suggesting they will likely surpass it. Today, several macroeconomic reports in the United States can impact the dollar's value. Since Bitcoin is denominated in dollars, a decline in the American currency can lead to Bitcoin's growth.
The situation will become even more intriguing tomorrow as the Non-Farm Payrolls and the unemployment rate will likely influence traders' actions in the market. Consequently, Bitcoin may also react. The latest local high has been broken but has yet to consolidate above it. From a purely technical standpoint, a correction is still more probable. If it starts, the cryptocurrency will again target the ascending trendline, approximately around the $26,000 level.
In the 24-hour timeframe, Bitcoin completed a downward correction near the $25,211 level. Although the cryptocurrency quickly surged upward, the downward correction may still need to be completed. If the price reverses downward or rebounds from the $31,000 level, the decline may resume, and selling with a target around the $26,000 range would be relevant. However, if the $31,000 level is surpassed, new purchases with a target of $34,267 will become feasible.
