Bitcoin Technical Analysis

The 4-hour chart

The price of Bitcoin is currently consolidating in a vital resistance zone of $22,500, which is also aligned with a previous significant increase of $22.8 thousand. In the event of a break, the market can reach an adequate demand and could expect another short race towards the crucial resistance level of $25,000.

However, when comparing the price and behaviour of the RSI indicator, a significant bearish divergence can be identified in the 4-hour period of time, which could result in a reversal.

However, taking into account the bearish divergence, the most likely scenario is a short-term consolidation correction phase followed by another impulsive upward trend towards higher price levels.