These Are The Two Critical Levels for BTC to Determine the Mid-Term Trend (Bitcoin Price Analysis)

Please fol­low and like us:
Pin Share

Bitcoin’s price is approach­ing a sig­nif­i­cant lev­el, which could prove deci­sive for the mid-term trend of the mar­ket. Although there are some pos­i­tive signs on the tech­ni­cal charts, it remains too ear­ly to decide whether a new bull­ish phase is on the horizon.

Technical Analysis

By: Edris

The Daily Chart:

On the dai­ly chart, Bitcoin’s price has been form­ing a large falling wedge over the last few months. The price has recent­ly bounced back from the low­er bound­ary of the pat­tern and is cur­rent­ly trend­ing upward toward the sig­nif­i­cant $18K resis­tance level.

In case of a bull­ish break­out from the $18K lev­el and the 50-day mov­ing aver­age locat­ed around the same price, a ral­ly towards the upper bound­ary of the pat­tern, near the $20K psy­cho­log­i­cal lev­el, could be expected.

On the oth­er hand, a rejec­tion from the $18K lev­el could cause anoth­er decline toward the $15,500 lev­el, and anoth­er retest of the low­er trend­line of the falling wedge would occur.

btc_price_chart_041201
Source: Trad­ingView

The 4‑Hour Chart:

Look­ing at the 4‑hour time­frame, the price has suc­cess­ful­ly breached the minor $16,800 resis­tance lev­el and is retest­ing it at the moment.

In the event of a suc­cess­ful pull­back and con­tin­u­a­tion, a ral­ly toward the $18K area would be immi­nent. How­ev­er, the RSI indi­ca­tor should be mon­i­tored close­ly in the com­ing days, as it has recent­ly pro­duced an over­bought sig­nal. It might also be form­ing a bear­ish diver­gence shortly.

The lat­ter may lead to a bear­ish rever­sal in the near future, which could prove dis­as­trous. It would like­ly ini­ti­ate a drop back to the $15,500 sup­port area and per­haps even low­er if the lev­el fails to hold.

btc_price_chart_041202
Source: Trad­ingView

On-chain Analysis

Bitcoin Miner Reserve

2022 has been show­cas­ing how bad a Bit­coin bear mar­ket can be. After mul­ti­ple defaults and bank­rupt­cies dur­ing the last few months and a grue­some decline in price, the min­ers are seem­ing­ly begin­ning to capitulate.

Min­ers may be con­sid­ered the most impor­tant par­tic­i­pants in the Bit­coin net­work, as they are respon­si­ble for val­i­dat­ing and secur­ing it.

They have also accu­mu­lat­ed mas­sive amounts of BTC dur­ing the last few years, and their buy­ing or sell­ing pres­sure can move the price sig­nif­i­cant­ly. There­fore, min­ers capit­u­lat­ing is ter­ri­ble news.

Accord­ing to the Min­er Reserve met­ric, which mea­sures the total amount of Bit­coin held by min­er wal­lets, they have been sell­ing BTC in huge chunks recent­ly, which can be seen on the chart by the sig­nif­i­cant plunge in the reserve.

This wor­ry­ing sig­nal comes after mul­ti­ple rumors about min­ers fail­ing to repay their debts, and there­fore, could set up the mar­ket for anoth­er mas­sive crash in the short term.

btc_miners_reserves_chart_041201
Source: Cryp­to­Quant
SPECIAL OFFER (Spon­sored)

Binance Free $100 (Exclu­sive): Use this link to reg­is­ter and receive $100 free and 10% off fees on Binance Futures first month (terms).

PrimeXBT Spe­cial Offer: Use this link to reg­is­ter & enter POTATO50 code to receive up to $7,000 on your deposits.

Dis­claimer: Infor­ma­tion found on Cryp­toPota­to is those of writ­ers quot­ed. It does not rep­re­sent the opin­ions of Cryp­toPota­to on whether to buy, sell, or hold any invest­ments. You are advised to con­duct your own research before mak­ing any invest­ment deci­sions. Use pro­vid­ed infor­ma­tion at your own risk. See Dis­claimer for more information.

Cryp­tocur­ren­cy charts by TradingView. 



Source link

Please fol­low and like us:
Pin Share

Leave a Reply

Your email address will not be published. Required fields are marked *