Bitcoin’s price recently experienced a sudden decline from the $29K mark, causing it to drop below the critical 100-day and 200-day moving averages. The price found support at around $25K and initiated a bounce. This rebound was a response to positive developments in the SEC-Grayscale case, which led to a court ruling in favor of Grayscale’s transformation of GBTC into a Bitcoin ETF. However, the price soon retraced and retested the 200-day moving average, resulting in another downward movement towards the $25K support zone.
While this price action indicates a bearish sentiment in the Market, there is a possibility of a bullish rebound if the support at $25K is reconfirmed. This could potentially transition the market into a consolidation phase. On the other hand, if the price drops below $25K, a cascade of further declines could be likely.
Analyzing the 4-hour timeframe, it can be seen that the price found support at $25K and went through a brief consolidation period characterized by low volatility. However, as the price reached the critical 61.8% Fibonacci level, buying pressure weakened and a reversal occurred. Bitcoin’s price retraced once again towards the $25K range.
In terms of on-chain Analysis, the Miner to Exchange Flow metric, which measures the volume of coins transferred from miners to exchanges, has shown that price downturns align with instances where miners sell their Bitcoin holdings. Recently, there was a surge in miner activity when Bitcoin’s price touched $30K, leading to a significant price retracement to $25K. The metric has since experienced a dip, but there are signs of a rebound, indicating potential renewed miner activity in the future.
Traders are advised to keep an eye on miners’ behaviors, as their selling activities can greatly influence Bitcoin’s short-term trajectory.
Disclaimer: The opinions expressed in this article are solely those of the author and do not reflect the opinions of CryptoPotato. Readers are advised to conduct their own research and use the provided information at their own risk..
#BTCs #Danger #Critical #Level #Bitcoin #Price #Analysis
While this price action indicates a bearish sentiment in the Market, there is a possibility of a bullish rebound if the support at $25K is reconfirmed. This could potentially transition the market into a consolidation phase. On the other hand, if the price drops below $25K, a cascade of further declines could be likely.
Analyzing the 4-hour timeframe, it can be seen that the price found support at $25K and went through a brief consolidation period characterized by low volatility. However, as the price reached the critical 61.8% Fibonacci level, buying pressure weakened and a reversal occurred. Bitcoin’s price retraced once again towards the $25K range.
In terms of on-chain Analysis, the Miner to Exchange Flow metric, which measures the volume of coins transferred from miners to exchanges, has shown that price downturns align with instances where miners sell their Bitcoin holdings. Recently, there was a surge in miner activity when Bitcoin’s price touched $30K, leading to a significant price retracement to $25K. The metric has since experienced a dip, but there are signs of a rebound, indicating potential renewed miner activity in the future.
Traders are advised to keep an eye on miners’ behaviors, as their selling activities can greatly influence Bitcoin’s short-term trajectory.
Disclaimer: The opinions expressed in this article are solely those of the author and do not reflect the opinions of CryptoPotato. Readers are advised to conduct their own research and use the provided information at their own risk..
#BTCs #Danger #Critical #Level #Bitcoin #Price #Analysis
