Bitcoin’s price recently reached the $50K mark and surpassed a 16-day high.
Analyzing the significant corrections of the past year, we can see a pattern in the daily timeframe. Often, breaking above the 20-day MA line or closing a candlestick higher has led to an upward trend.
This pattern was repeated six times, but it failed twice. The market was already too hot at the time of the first failure. FUDs were caused by China’s ban on miners and Elon Musk’s famous tweet that Tesla had stopped accepting Bitcoin. A candlestick has been placed above the 20-day MA. We will have to wait to see if this triggers a new Bitcoin rally.
Bitcoin was able to surpass the dynamic descending line in the shorter timeframes. It is currently trading below the MA-200 line for nearly 40 days.
Breaking above this resistance could lead to a continuation run to the static and dynamic resistances of $53 -54K. Analysts believe that the price could retrace from this area.
The majority of on-chain metrics confirm that there will be a supply shock in the medium-term. One thing to be concerned about is the average transaction size from derivative exchanges to other exchanges.
This chart shows that retail traders make up the majority of the perpetual market. The short-term price action will therefore be volatile.
This analysis was done exclusively by @GrizzlyBTClover and @CryptoVizArt for CryptoPotato.
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.