The Bitcoin price is consolidating above the $20K mark. As the 2017 all-time high, $17K-20K, the range could provide support and may even trigger a rally towards the $30K level.
The Daily Chart
Before a potential retest at the $30K supply zone, the price must break the $24K resistance and 50-day moving average. A rapid fall towards the $15K mark or beyond could be possible if BTC does not gain enough bullish momentum.
The 4-Hour Chart
The price broke the descending channel pattern to its upside in the 4-hour timeframe. This pattern is bullish and could be paired with strong support levels.
The price has been trending slowly towards $24K, despite a pullback to the broken trendline. This lackluster bullish momentum is a concern as it indicates that sellers remain in control. A further fall could be expected even before a retest at $24K.
The more likely scenario is a prolonged consolidation between the $20K- $24K levels, before buyers or sellers can gain control over their counterparts and create the next trend. Overall, the 4-hour price action looks very slow right now, which is indicative of the indecisiveness among market participants following a huge crash in the last few months.
The MVRV, or Market Cap to Realized Cap ratio, is a measure of whether a coin’s price is undervalued. This indicator on-chain may be used to map the market.
Market tops are characterized by values above 3.7, and market bottoms are characterized by values below one. Recent market crashes have seen the market retest its all-time high. The MVRV metric dropped to below 1 for the first time since the Covid crash. However, the market’s momentum remains poor. Bitcoin is at these price levels undervalued based on the MVRV metric.
The market is in its final bear market stage. A new bullish cycle can be expected once this capitulation phase of long-term investors and retailers ends.
Marla Brooks – Financial Analysis
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