Bitcoin’s bullish downtrend has come to a halt as the price is consolidating in the $29K-$30K region over the past few days. $28K-$30K below the 2021 crash is currently acting as support and holds the price for a couple of weeks.
technical analysis
By adris
daily chart
Currently, if the price breaks the $28K-$30K area downside, a deeper decline can be expected towards the $24K level and even $20K level. On the other hand, if the price can bounce off this zone, the $35K resistance area and the $40K supply area may act as stable barriers, while the 50-day and 100-day moving averages will act as dynamic resistance.
Overall, a downtrend continuation appears to be the more likely scenario. However, a short-term pullback can be expected before any further downside, as Bitcoin is largely oversold.
4 hour chart
On the 4-hours time frame, the price has failed to retest the break above the $35K level over the past few weeks and is currently trading in a tight range below it. This consolidation phase could set the stage for the next bullish momentum, and a valid breakout from the high or low of the tight range could set the trend in the short term.
The RSI has also broken below the 50% level to indicate that the bears are in control again, and a bearish breakout from the current range is likely. On the other hand, if the price turns upwards from the current range, a retest of the $35K level would be the first target.
onchain analysis
By Shayan
This chart includes the long-term holder SOPR and the 30-day exponential moving average of the bitcoin price. Historically, the LTH-SOPR shows values below one at the end of a bear market, usually when a capitulation event occurs. Then, the big players also start moving their coins at a total loss, which can be interpreted as selling pressure under fear and doubt (capitulation).
Long-term holder SOPR (EMA 30) has dropped below 1, which is a bearish signal for the market, indicating that long-term holders may lose faith and sell their assets. This has often triggered the last leg of a bear market. However, it should be mentioned that this phase could lead to a few disappointing months of volatile price action along with several significant shakeouts.
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.