top partner

for CFD

Bitcoin’s price has gained significant bullish momentum and recovered from the drop caused by the FTX fallout. Yet, it has reached a robust resistance, and if the bulls push the price above it, a mid-term uptrend will become possible.

Technical Analysis

By Shayan

The Daily Chart

Bitcoin’s price continued its rally after overtaking the 50 and 100-day moving averages. It has also surpassed the wedge’s upper trendline reaching a decisive resistance level with considerable momentum. Currently, the market faces the prior major pivot, a critical resistance level of roughly $21.5K.

If Bitcoin successfully surpasses the $21.5K level, the demand will be more likely to return to the market, and a new rally toward higher price levels may take place. In case of a breakout, the $25K price level will be the next barrier on Bitcoin’s path. Yet, the price has been surging impulsively, and it could enter a consolidation stage before the next impulsive rally.

Source: TradingView

The 4-Hour Chart

In the 4-hour timeframe, it is evident that the price has fully recovered from the FTX crash and reached its prior major daily pivot at $21.5K. Major pivots are crucial levels in classic price action patterns, and moving above them could be a bullish sign of an uptrend.

Meanwhile, the price has formed a double-top reversal pattern, a well-known bearish signal, and if it gets rejected, a leg down will be possible. Hence, considering the importance of this region, the upcoming price action should decide Bitcoin’s path in the mid-term.

Source: TradingView

On-Chain Analysis

By: Edris

Bitcoin Miners Position Index

Bitcoin’s miners, who may be the most critical players in the network as they provide security and validate transactions, also play a crucial part in the market when it comes to supply and demand. Miners have large bags of BTC, and their selling or hodling affects the asset’s price.

Over the last few months, miners have been distributing rather than accumulating or hodling, as the Bitcoin plunge has put pressure on most of them, forcing their hand to sell their coins to cover their costs of operation and with the recent surge in price, they chose to sell to the strength again.

This behavior is clearly visible on the Miners Position Index with a considerable spike and is very similar to April 2022, when Bitcoin was trading around the $46K mark and then began to fall rapidly. So, investors should be cautious as the bear market may still continue since the recent selling pressure could also lead to another crash in the short term.

Source: CryptoQuant

The post BTC Taps $21K But is it Time for a Correction? (Bitcoin Price Analysis) appeared first on CryptoPotato.

Read the full story: Read More“>

Blog powered by G6

Disclaimer! A guest author has made this post. G6 has not checked the post. its content and attachments and under no circumstances will G6 be held responsible or liable in any way for any claims, damages, losses, expenses, costs or liabilities whatsoever (including, without limitation, any direct or indirect damages for loss of profits, business interruption or loss of information) resulting or arising directly or indirectly from your use of or inability to use this website or any websites linked to it, or from your reliance on the information and material on this website, even if the G6 has been advised of the possibility of such damages in advance.

For any inquiries, please contact [email protected]