Here Are Two Possible Scenarios for BTC After a Red Weekend (Bitcoin Price Analysis)

The price of Bitcoin continues to fall in an effort to recover. The weekend was uneventful at best and some cryptocurrency lost some value. It’s worth considering the possible scenarios for Bitcoin following recent events, and the critical levels in each case.

Technical Analysis

By: Shayan

Daily Time Frame

The price has not registered a higher high-price action pattern during the daily timeframe, and both the range’s peak and the 100 day moving average have rejected it. Bitcoin currently stands above the critical support zone of $36.3K-37.3K. To continue a surge towards the top of the range, the cryptocurrency must maintain the support zone mentioned.

However, BTC could plunge further if it falls below this level. The $34K to 35K support area will serve as the next level of support.

Source: TradingView

Time frame for 4H

The chart shows that Bitcoin consolidates between two obvious supply and demand areas. The significant support level is at $34K. While the immediate resistance is close to $45K.

The bears are in control of the price, as it has fallen with strong bearish momentum. The bearish momentum has been decreased by a clear divergence in the price and RSI indicators. This could lead to a reversal. Bitcoin, however, has formed a bearish continuation correct pattern (Yellow trendslines). If the bottom trendline fails to hold, another extreme bearish move can be expected.

Source: TradingView

Onchain Analysis

By Edris

ll Miners Reserve (EMA 30).

Despite all the uncertainty around the global economy, politics and bitcoin, miners continue to accumulate it. They are influential in network security and issuance integrity.

It could be very helpful to analyze their behavior and predict where the price will go next. The cryptocurrency was also highly coveted by them before the bull run of 2020-2021, when it ranged from $5K to $10K. Their accumulation rate fell after the bull run began. Then, they quickly distributed their supply in the late 2020s to early 2021 period, which severely weakened the uptrend.

Following this huge distribution, a steady and slow accumulation began again. This is still going on today. This is very similar behavior to the early 2020 and pre-bull run consolidations of the price. It indicates that miners expect higher midterm prices and don’t consider current rates suitable for selling their coins.

This could be due to the fact that most of them have moved to the U.S.A. from China over the past two years. They have more financial support, security, and aren’t under any pressure to sell their coins given the extreme volatility in the price.

Source: CryptoQuant
Read More

2021's Most Anticipated Growth & Wealth-Building Opportunity

Join Thousands of Early Adopters Just Like You Who Want to Grow Capital and Truly Understand Cryptocurrency Together

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.

2021's Most Anticipated Growth & Wealth-Building Opportunity

Join Thousands of Early Adopters Just Like You Who Want to Grow Capital and Truly Understand Cryptocurrency Together

Close Bitnami banner
Bitnami