Is the Bitcoin Bull Rally Dead? Important Pattern Begins to Take Shape (BTC Price Analysis)
Bitcoin’s price has been consolidating for some time now and has been unable to sustain the significant upward momentum observed over the past few months. But things still look positive for BTC in the short term.
Technical analysis
by TradingRage
Daily Chart
On the daily chart, the price is attacking aggressively and breaking resistance levels one by one. However, with the bullish momentum waning, the market is currently consolidating above the $40,000 level. The decrease in the relative power index also confirms this idea.
However, the RSI is still showing values above 50%, indicating that the momentum has not yet shifted to the downside. Therefore, with the strong support level at $40,000, the price is likely to reach the $48,000 resistance zone before any major correction occurs in the coming weeks.
4-Hour Chart
As seen on the 4-hour timeframe, the recent consolidation has formed a symmetrical triangle, a classic price action pattern. The symmetrical triangle can be both a continuation and reversal pattern, depending on the direction of the potential breakout.
As a result, investors can be optimistic that the price will eventually rise towards the $48,000 level if an upward trend is observed. On the other hand, a bearish breakout could lead to a deeper correction in the near future.
On-Chain Analysis
By Shayan
Flow from Miner to Exchange (average)
The chart shows the 7-day exponential moving average applied to the Miner to Exchange Flow (average) metric in conjunction with the Bitcoin price. This unique metric shows the volume of coins moving from miners to exchanges and provides insight into potential selling pressure from miners.
Historically, significant or minor declines in Bitcoin price have consistently coincided with instances where miners began transferring their Bitcoin holdings to SPOT exchanges. However, a notable shift has recently emerged as the metric experienced a significant increase after Bitcoin price reached the $45,000 level and entered a consolidation phase.
This development suggests that miners are taking profits and raises the possibility of a market reversal if the benchmark continues to rise and reaches concern levels. Monitoring this metric is vital in anticipating potential changes in market dynamics and adjusting strategies accordingly.
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