Last week, the 50-day and 100-day moving average lines went through a bullish crossover; However, Bitcoin failed to sustain the bullish momentum and experienced price volatility.
Later in the week, the price corrected and made another attempt to break above the moving average lines, but was quickly rejected and declined below the $40K mark.
technical analysis
Technical Analysis By Shayan
daily chart
The next major support for BTC is in the $36K-$37K area, if this level fails to hold, the price could drop to the $30K demand zone.
Moreover, the RSI indicator is currently trading below the 50 mark and the longer-term resistance trendline, indicating that the bears have gained control of the market. Bitcoin’s RSI needs to break above the downtrend line to reach higher prices.
The next major resistance level is the 50-day and 100-day moving average lines on the bullish side.
4 hour chart
The $42K support has turned an important resistance level on the lower time frame after the price failed to break above it. Selling pressure was evident at the $42K level and caused a sudden drop to the $39K area, which is currently being tested.
Based on what we see in the market now, the bears will probably be able to push the price below the $39K level, but the lower trendline of the channel and the medium-term support level at the $37K area will act as a significant hurdle for Bitcoin. If the mentioned level fails to sustain the price above it, a fall into the low demand areas would be imminent.
onchain analysis
Onchain Analysis By Shayan
This chart includes long-term holder SOPR, ROC and bitcoin price. Spent Output Profit Ratio (SOPR) compares the value of output over time spent with the time generated to determine the profit ratio of all market players. You can estimate whether the distribution of transaction outputs spent is in profit or loss.
The rate of change (ROC) in the SOPR of long-term holders indicates when these entities are in the accumulation or distribution phases.
For investors who are less sensitive to short-term noise, the market is now in an accumulation phase, when the risk/return rate provides a positive bullish signal for market direction.
PrimeXBT Special Offer: Use this link to register and enter code POTATO50 to get up to $7,000 on your deposit.
Disclaimer: The information found on Cryptopotato is that of the cited authors. It does not represent the opinion of Cryptopotato whether to buy, sell or hold any investment. You are advised to do your own research before taking any investment decision. Use the information provided at your own risk. See disclaimer for more details.
Cryptocurrency charts by TradingView.