Bitcoin Price Analysis: Here’s the Level BTC Need to Break to Escape from Danger Zone

Bitcoin’s price has been steadily consolidating between $20K and $23K in the last few weeks after a huge crash at the $30K mark. The $17K-20K range has supported the price so far. It also includes the previous cycle’s ATH.

Technical Analysis

By Edris

The Daily Chart

Bitcoin’s price has stabilized between $20K and $23K in the last few weeks after a huge crash at the $30K mark. The $17K-20K level seems to be the price support. This is a significant level, and if there’s a break, the price could drop rapidly to the $15K mark or lower.

Given the current price action, and the third rejection from the area, it seems that a run towards the $24K resistance and the 50-day moving mean seems more likely. A bullish breakout of these levels would trigger a rally towards $30K supply zone, a critical level at which price reaction will determine the market’s mid-term trend.

Source: TradingView

The 4-Hour Chart

It is clear that the price bounces within a bearish flag even though it has rebounded from the lower boundary. This is evident on the 4-hour timeframe. The price is currently trending towards the $23-24K area and could retest its higher trendline. A bearish breakout of the flag would be expected if the levels are held and the price rejects once more. This would allow for continuation of the downtrend.

The RSI indicator also suggests a relative dominance by the bulls, increasing the likelihood of a move towards $23K. The formation of the bearish flag suggests more downside in the near-term, unless the price breaks it to the upside.

Source: TradingView

Onchain Analysis

By Shayan

It is possible to identify current trends by analysing the sentiment of market participants. Bullish cycles often end when major market participants enter the “distribution phase”e, when they sell their assets and realize their profit.

While retailers are providing the demand side, they also experience FOMO. A bearish cycle often ends when major players enter the “accumulation phase”e, when they begin purchasing coins at a discount from weak hands.

Investors of small capital panic and sell their assets, resulting in significant losses. The market period is known as “Capitulation Pha”e. Smart money continues to accumulate.

This figure shows the NUPL metric. It represents the overall profit/loss. Due to the massive drop in Bitcoin’sn’s value below $20K, the measure fell to the blue region (= 0.09). The market has seen historically significant surrender when this measure enters into the blue range, resulting in a new bullish rally.

Source: CryptoQuant

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Marla Brooks

Marla Brooks – Financial Analysis My name is Marla Brooks, and I am the mainstream behind the”observednews.com”  for the powerful and most delicate insights into the latest activities in the financial analysis category. I started my journey as an independent financial consultant. I had approximately nine years of experience in this field. I am free soul so; my passion for exploring the world has taken me to the nations across the globe and given me the chance to report for a portion of the best news associations. Currently, I am a full-time editor as experienced in finance and started to use my abilities.

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