Prices are consolidating in a key demand area. However, given current global market sentiment and recent price action, it is too early to label the current zone as a bottom.
Daily charts
Although recently balanced in the $29- $30,000 range, prices may just form an intermediate downtrend consolidation pattern before forming another downtrend.
On the other hand, the daily chart RSI tries to break the medium term downtrend line. If that happens, there could be a short-term mitigation correction. In any upward move, the first significant supply area will be in the $37- $40,000 range (in the daily time frame).
Figure 4 hours
On the lower time frame (LTF), bitcoin is forming a wedge and will determine its next direction when it breaks out of the wedge.
If the wedge breaks, a bearish expansion phase is the most likely scenario in the coming weeks. On the other hand, a bullish breakout could signal a reversal, pushing the price of bitcoin to a key resistance level at $34,000.
In addition, RSI has reached its resistance trendline and is struggling to break through it in the 4-hour time frame. If such a breakthrough occurs, a reversal would be imminent.
