BTC Price Analysis- Rejection Candles at $24700 Rings Pullback Opportunity

The BTC/USDT pair rises within the wedge channel of an inverted pennant pattern. The continuation pattern has the same core concept as the inverted flag pattern, which we explained in our previous article. Thus, following this pattern, the Bitcoin price is susceptible to a significant downfall if the coin traders lose the support trendline.

Key points:

• An inverted flag pattern breakout is needed to bring directional movement in BTC
• The 20-and-50-day EMA bullish crossover shows early signs of a trend reversal
• The intraday trading volume in Bitcoin is $21.5 Billion, indicating a 25% loss

Source-Tradingview

The ongoing recovery within this pattern has raised the BTC price by 30% from the bottom support of $19000. As for now, the coin price is trading at the $34651 mark and facing trouble surpassing the combined resistance of $24670 and the overhead trendline.

Several higher price rejection candles at this resistance in the past four days 

indicate the sellers continue to defend this barrier. In addition, when the price displayed such candle activity previously, the coin price plunged to the bottom support trendline.

Thus, with sustained selling pressure, the BTC price is poised to drop 4.5% to retest the ascending trendline near $23500. However, if the sellers breach this support and give a daily candlestick below it, the bearish will get triggered.

As a result, the coin price should drop 23% and reach $19000 again as per the technical setup.

However, the buyers may get in-between support levels to interrupt this potential fall. These support levels are $22600 and $20800.

While price action bolsters a correction theory if the market sentiment favors buyers, an upside breakout from the pattern is possible. A bullish breakout from the pattern’s resistance trendline will offset the bearish view and surge the BTC price 13.7% higher to $28000.

Technical Indicator

EMAs: A bullish crossover between the 20-and-50-day EMA may accelerate the bullish momentum to breach the overhead trendline. However, the 100-day EMA moving around $26000 may stall the bullish rally.

Relative Strength Index: the daily-RSI slope surpasses its previous peaks, indicating the buyers’ commitment to Bitcoin.

• Resistance levels– $24760 and $26000
• Support levels- $22600, and $20800.

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