BTC analysis – the formation of the local bottom is only part of the correction

BTC currently oscillates around the key support level and it seems to create a sideway structure, which has not yet been confirmed. It will be important where the market price of the main cryptocurrency forms local bottom in the short term. The dominance, meanwhile, holds recent growth at 44.21%.

The price recently caught a short-term momentum as it surpassed the short-term resistance of maximum correction. It subsequently reached a local high of only $ 31,000, and it appears to be the bulls have lost their strength. However, in terms of short-term prediction, there is hope of forming a local bottom and continuing the sideway movement.

BTC oscillates around 30,000. Source: TradingView

BTC under $ 30,000

RSI recently created positive divergence, but don’t forget that we’re looking at a short-term timeframe. This means that the formation of the local bottom can only be part of the correction structure. However, if the price creates a higher short-term bottom in the game, there is a sideway structure by which we can target.

We are miles away from long-term reversal, so there is no point in talking about it in the short term. We are watching support $ 27,000 and on the weekly chart MA200. Resistance on the contrary, it is at the level of $ 31,000. I’m still short bearish but I stay for a long time bullish. Bottom formation is one thing, but accumulation is another. This may take several more months.