Bitcoin’s struggle to hold above $24K continues. It has been rejected at this level for the third consecutive time. The price has rebounded from the $20K resistance level last month, and has been making higher highs than lows on the daily charts. This created a bullish structure. Can the cryptocurrency finally surpass the $24K resistance?
The Daily Chart
Bitcoin has not yet broken the $24K barrier as of writing. Further resistance is being created by the 100-day moving average, which has now reached the $24K level. The 50-day moving mean, which is currently at $22K, would provide support in the event of a bearish pullback. Bearish momentum will likely return if the price falls below the MA. A downtrend is likely to continue below the $20K support level.
However, a rapid rally towards the $30K support zone is possible if the price breaks above the $24K and 100-day moving average levels.
The 4-Hour Chart
Although the price reached the upper boundary of the large bearish flag, it was rejected again. The bullish trendline has formed in recent weeks and could be a support for the near term. The RSI oscillator however has shown a bearish divergence signal, which suggests a possible breakdown of the bullish trendline.
A drop towards the flag’s lower boundary, or even a bearish breakout with continuation below $18K would be most likely. This continuation pattern is validated following a breakout, and could be the catalyst for another bearish impulsive move.
However, it should be noted that although the bearish continuation scenario is not impossible if the price breaks below the flag in the days ahead, it seems less likely.
This chart shows Bitcoin’s Long-Term Holder Realized Prices alongside its price. It is the average price weighed by the amount of coins held by long-term holders. It is also known as the resistance or support level on the chain.
A bear market’s bottom usually forms when the market is in extreme fear. Capitulation is a stage in which all market participants reach a point where they are vulnerable to huge losses. The last group to capitulate is usually the long-term holders and whales. This would be the last phase of the bearish cycles.
Bitcoin’s price has exceeded the LTH realized price three times in its existence. This means that long-term investors are now at a loss. It has risen above this crucial level and is now beginning to recover. If the price supports the level, the next bull market can be initiated.
The post Is Bitcoin finally breaking $24K? Or is there another crash in the works? (BTC Price Analysis), appeared first on CryptoPotato.
Marla Brooks – Financial Analysis
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