Bitcoin (BTC) price failed to sustain last week's gains, casting some doubt on the possibility of a reversal of the uptrend that began two weeks ago.

A break above the descending resistance line on the daily timeframe is needed to confirm the trend is bullish.

Bitcoin (BTC) Price Fails to Sustain Gains on Weekly Frame

Weekly time frame technical analysis shows that BTC price has increased significantly in the previous two weeks. The recovery confirmed the $24,800 horizontal zone. This is a key zone that has consistently acted as both resistance and support (red and green symbols) since July 2022.

So, as long as the price does not close below this zone, the ongoing decline could be a retest in the uptrend, validating the $24,800 zone as support in the process.

However, the cryptocurrency failed to sustain last week's gains. Despite hitting a local high of $27,486, the price created a long upper wick and closed down. The long wick (black symbol) and the lower close indicate that the bulls were unable to maintain the upward movement. Instead, the bears took over and pushed the price down.

If the decline continues, the $24,800 zone will be 5% lower than the current price. On the other hand, a 20% increase is needed for the price to reach the $31,000 resistance area.

BTC/USDT Weekly Chart | Source: TradingView

Similar to price action, the weekly RSI does not give clear signals. When evaluating market conditions, traders use the RSI as a momentum indicator to determine whether the market is overbought or oversold to decide whether to accumulate or sell an asset.

The bulls still have the advantage if the RSI is above 50 and sloping up. However, if the reading is below 50 then the opposite is true.

Currently, the RSI is slightly below the 50 line although it remains above the bullish divergence line that began in July 2022. Since the initial bullish divergence catalyzed the current upward movement, the trend can still be considered bullish if this line holds.

Can BTC Price Break Above Resistance?

Technical analysis from the daily timeframe also gives conflicting signs. On the upside, the price reclaimed the $25,600 horizontal zone after deviating below it on September 11 (green circle).

On the downside, BTC has failed to break above the descending resistance line since its yearly high. Rather, the line was rejected on September 19 (red symbol).

Like the weekly timeframe, the daily RSI is close to the 50 line. Additionally, the bullish divergence that caused the recovery from the $25,600 area remains intact, currently at 41.

On the daily timeframe, the closest support is at $25,600, 3% below the current Bitcoin price. Besides the resistance line, the $29,250 resistance area is 12% above the current price.

BTC/USDT Daily Chart | Source: TradingView

Therefore, #BTC 's near-term price outlook will be determined by whether the price will break above the descending resistance line or break below the $25,600 zone.

In case of a breakout, the price is expected to rise by at least 10% to $29,250. On the other hand, a breakdown below $25,600 could see the price drop to $24,800.

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