The market is now in a period of consolidation after the recent surge in bitcoin price and the successful breakout above the major $30,000 resistance level. However, there are some notable signals emerging in this phase.
Technical Analysis
From: Edris
The daily chart:
On the daily chart, the price has repeatedly tested the $30,000 level since its recent break. Although this level has provided support so far, there are worrying signs in the form of bearish divergence on the RSI indicator.
This points to the possibility of a near-term correction or reversal. If there is a pullback, the 50-day and 200-day moving averages around $28,000 and $26,000, respectively, could serve as key support levels.
On the other hand, if the price resumes its uptrend, a move towards the $38,000 resistance zone becomes a plausible scenario.
Source: TradingView
The 4 hour chart:
On the 4-hour chart, the price has been showing erratic and unpredictable movements for the past few weeks, making it difficult to determine its future direction. The $30,000 level will be tested again and a possible breakdown could result in a drop towards the $27,500 level.
The RSI indicator was relatively flat, hovering around the 50% level, suggesting a lack of clear dominance by either buyers or sellers. The ongoing struggle near the critical $30,000 area further adds to the near-term uncertainty in the market.
Source: TradingView
On-Chain Analysis
From: Edris
Bitcoin exchange reserve
The recent spike in bitcoin price has sparked discussions about whether market participants are selling their coins for minimal profit or choosing to hold onto them longer.
By analyzing the Bitcoin exchange reserve metric, which tracks the amount of BTC held in exchange wallets, we can gain insights into investor behavior. A rise in this metric suggests that investors are depositing their coins on exchanges, likely with intentions to sell them. Conversely, a decline suggests that investors are withdrawing their BTC from exchanges, suggesting they would rather hold onto their coins for a longer period of time.
Recent data shows a significant drop in Bitcoin exchange reserves over the past month. This drop indicates bullish sentiment among market participants as they anticipate further price increases and tend to hold on to their coins.
Source: CryptoQuant
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