Bitcoin Struggles Around $30K but Is The Bottom Getting Closer? (BTC Price Analysis)

The price of Bitcoin has been steadily rising for nearly a month. However, the price did not break below the $30K level or rebound from it over a prolonged period. This is a significant level, as it held the price at the $64K all time high in April 2021. It could be used to support the cryptocurrency’s short-term rally.

Technical Analysis

By Edris

The Daily Chart

The 50-day moving mean and the $35K area would be the first resistance levels to be targeted if there is a bullish movement. If the price falls below the current $28K-30K support zone, an impulsive bearish move towards the $24K or eventually the $17K-20K area could be possible. This could be the end of this bear market. To be bullish, the price must break above the 200-day moving mean, currently at $42K.

Source: TradingView

The 1-Hour Chart

The price fluctuates between $28K to $31K in the 1-hour time frame, trapping bulls and bears alike and hunting stop losses. The cryptocurrency has formed a falling wedge and dropped to $28K, the lower limit of the range. It has also fallen below that level, tempting bears to take short positions on the bearish breakout.

Source: TradingView

The RSI indicator signaled a bullish divergence, so this price action was a fake breakout. BTC has risen from $28K and broke above the falling wedge pattern before turning to the downside.

The bears have taken control of the market again. A bearish flag pattern has formed, indicating that the price is heading towards the lower limit of the range. A drop below $24K would be expected if the price breaks through this range.

On-Chain Analysis

By Edris

Bitcoin Long Term Holder SOPR(SMA 30).

Markets tend to place a bottom when there are huge losses for market participants. This is known as “Capitulation.”

The capitulation of short-term Bitcoin holders is an important feature of the Bitcoin market. It helps to find local bottoms during a bullish long-term trend.

Short-term holders’ capitulation during bear markets isn’t a good indicator, as the majority of the supply is held long-term. For a multi-year bottom, a long-term holders’ capitulation phase will be necessary.

The chart below shows the SOPR of long-term holders – a measure that indicates the number of profits/losses achieved by this cohort. Values greater than 1 are indicative of realized profits. Values below one indicate losses.

As these investors were exiting the market at loss, it is clear that there was a long period of long-term holders’ capitulation during bear markets in the past. The Smart Money accumulation phase coincides with the long-term holders’ capitulation. The capitulation phase is currently underway for long-term holders. They are selling at a loss which indicates that smart money accumulation has begun.

Source: CryptoQuant
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Marla Brooks

Marla Brooks – Financial Analysis My name is Marla Brooks, and I am the mainstream behind the””  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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