The bitcoin (BTC) price failed to consolidate last week’s rebound, casting doubt on the possibility of a reversal of the trend that began two weeks ago.

A breakout of the downward resistance line on the daily timeframe will be required to confirm the bullish trend.

BTC did not consolidate the rebound on the weekly chart

The technical analysis of the weekly timeframe shows that two weeks ago the BTC price bounced significantly, testing the horizontal area of $24,800. This is an important area that has been alternately acting as both resistance and support (red and green icons) since July 2022.

As long as the price did not close below this area, the decline should only be considered as a retest of this area to confirm it as support.

However, last week BTC failed to consolidate its growth. After reaching a local high of $27,486, the price formed a long upper wick and showed a bearish close. The wick (black icon) and the downside close indicate that the bulls were unable to build on the upward momentum.

If the decline continues, a correction to the $24,800 area would mean a 5% drawdown from the current price. On the other hand, a 20% rise would be required for the price to reach the key resistance area of $31,000.

By Linda

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