After the recent rise in Bitcoin price and the successful break above the significant $30K resistance level, the market is now going through a period of consolidation. However, notable signs are emerging during this phase.
The daily chart:
On the daily chart, the price has repeatedly tested the $30K level since breaking above it recently. While this level has provided support thus far, there are worrisome indications in the form of a bearish divergence seen on the RSI indicator.
This suggests the possibility of a correction or reversal in the near term. Should a decline occur, the 50-day and 200-day moving averages at roughly $28K and $26K, respectively, could act as significant support levels.
Conversely, if the price continues its bullish momentum, a move towards the $38K resistance zone becomes a plausible scenario.
The 4 hour chart:
On the 4-hour chart, the price has shown erratic and unpredictable movements in recent weeks, making it difficult to determine its future direction. The $30,000 level is being tested once again, and a potential breakout could result in a drop towards the $27,500 level.
The RSI indicator has been relatively flat, hovering around the 50% mark, suggesting a lack of clear dominance by either buyers or sellers. The ongoing battle near the critical $30K area further reinforces near-term uncertainty in the market.
Bitcoin Exchange Reserve
The recent bullish movement in the price of Bitcoin has sparked debates as to whether market participants are selling their coins for a minimal profit or opting to hold them for longer.
By analyzing the Bitcoin exchange reserve metric, which tracks the amount of BTC held in exchange wallets, we can gain insight into investor behavior. An increase in this metric indicates that investors are depositing their coins on exchanges, likely with the intention of selling them. Conversely, a decline suggests that investors are withdrawing their BTC from exchanges, indicating a preference to hold their coins for an extended period.
Recent data shows a significant decline in the Bitcoin exchange reserve metric over the past month. This drop suggests bullish sentiment among market participants as they anticipate further price increases and are inclined to hold their currencies.
SPECIAL OFFER (Sponsored)
Binance Free $100 (Exclusive) – Use this link to sign up to receive $100 free and 10% off your first month’s fees for Binance Futures (terms).
PrimeXBT Special Offer: Use this link to sign up and enter the code CRYPTOPOTATO50 to receive up to $7,000 on your deposits.
Disclaimer: The information found on CryptoPotato is that of the writers cited. It does not represent the views of CryptoPotato on whether to buy, sell or hold investments. You are advised to do your own research before making any investment decisions. Use the information provided at your own risk. Consult the Legal Notice for more information.
TradingView cryptocurrency charts.
This post Will Bitcoin Plunge Below $30K or Are the Bulls Staging a Rally? (BTC Price Analysis)
was published first on https://cryptopotato.com/will-bitcoin-plummet-below-30k-or-are-the-bulls-staging-a-recovery-btc-price-analysis/