
[ad_1]
Bitcoin experienced an unexpected drop from the $29,000 mark, leading to a sharp decline in the important 100-day and 200-day moving averages. After turning bearish, how far can BTC go?
technical analysis
By sleeping
daily chart
After falling from the $29K range, bitcoin price declined below the important 100-day and 200-day EMAs, finding support between the crucial $25K levels where the rally started.
This sudden upward jump was a direct response to developments in the SEC-Grayscale case, in which Grayscale won a favorable court ruling regarding the conversion of GBTC to a bitcoin ETF.
However, this initial rally was followed by a retracement to retest the 200-day EMA, which led to another impulsive decline once again towards the critical $25K support area.
While this price action indicates a clear bearish sentiment in the market, it is important to note that a possible reconfirmation of the support could pave the way for another bullish rally, which could potentially push the market into a consolidation phase. can convert. Conversely, if the price declines below the $25K mark then a massive decline becomes likely.
4-hour chart
Looking at the 4-hour time frame, it becomes clear that the downward trajectory stalled when bitcoin reached the critical $25K support area, leading to a brief consolidation characterized by low volatility. Nevertheless, there was a sudden jump in price, marked by the appearance of a large green candle.
However, as the price climbed and reached the crucial 61.8% Fibonacci level, which is a key target in market correction phases, the buying pressure weakened, leading to a reversal. As a result, Bitcoin started another impulsive retracement, which pushed its price back towards the $25K range.
In the coming days, if the sellers manage to push the price below this crucial mark, the $25K range acts as a sufficient psychological support level. The market could witness another sharp decline towards the lower price range.
on-chain analysis
By sleeping
The chart shows the volatility of the market capitalization of Bitcoin as well as a 14-day moving average applied to the Miner to Exchange flow metric. This unique metric is a barometer for the amount of coins moving from miners to exchanges, highlighting potential selling pressure from miners.
Interestingly, over the past several months, price declines, whether large or small, have consistently overlapped with instances where miners have begun to transfer their bitcoin holdings to spot exchanges.
However, a notable development emerged recently as the metric experienced a huge jump with the price of bitcoin touching the $30K mark. Interestingly, this surge in miner activity contributed to a significant price retracement, which pushed bitcoin’s valuation down to the $25K range. Thereafter, the metric saw a significant decline, reaching an annual low.
Nevertheless, this metric is showing signs of a slight rebound, indicating the potential for renewed miner activity in the coming days. As such, it would be prudent for traders to keep a watchful eye on miners’ behavior and be alert to any signs of an increase or decrease in selling activity, as these activities can significantly affect bitcoin’s short-term trajectory.
Special Offer (Sponsored)
Binance Free $100 (Exclusive): Use this link to register and get $100 free and 10% off fees on Binance Futures for the first month. (terms).
PrimeXBT SPECIAL OFFER: Use this link to register and enter the code CRYPTOPOTATO50 to receive up to $7,000 on your deposit.
Disclaimer: Information found on Cryptopotatoes is from the cited authors. It does not represent the opinion of Cryptopotatoes to buy, sell or hold any investment. You are advised to do your own research before making any investment decision. Use the information provided at your own risk. See disclaimer for more details.
Cryptocurrency charts by Tradingview.
source: cryptopotato.com
[ad_2]