• Bitcoin’s price is currently being supported at around $29,000.
• If the market rebounds and breaks above the $30K zone, a rally toward $38K would be expected.
• If Bitcoin fails to climb above $30K again, the $27,500 support level would likely get tested.
Bitcoin Price Analysis
Bitcoin’s price has yet to recover and is currently being supported at around $29,000. Technical analysis of both the daily and 4-hour charts reveals that if this level breaks to the downside then the 200-day moving average located around the $27K level would be a probable target in the short term. On the other hand, if Bitcoin breaks above $30K then a rally towards $38K could be seen. The RSI indicator is also showing values around 50%, offering little insight into potential direction for short term trading.
Key Factors to Watch
The market is currently located in a key area and its reaction to this zone will determine Bitcoin’s price action in coming weeks. Traders should watch out for any sign of weakness below or strength above current levels as any such movements will likely set the trend for BTC prices in near future.
Onchain Analysis
Since peaking at nearly $69k last year, Bitcoin has experienced significant fluctuations over past two years with various factors influencing its prices. Analyzing data from on-chain metrics such as miner’s activity can provide valuable insights into potential directions for BTC prices over next few months or even years.
Miners Activity
According to Glassnode’s Miner Outflow Multiple metric, miners are continuously cashing out their profits which suggests an imminent bearish pressure on BTC prices considering that miners have been known to sell off large amounts of coins during bear markets in order to cover costs associated with mining equipment and electricity bills etc. Moreover, hash rate has also faced some minor corrections recently which further validates this theory of potential downward movement of BTC prices ahead as lower hash rates often lead to increased selling pressure by miners on crypto assets like bitcoin due to reduced incentives compared to when they are higher usually resulting in a decrease in prices of these assets over time.
Conclusion
Overall many indicators point towards an upcoming bearish pressure on Bitcoin’s price as it continues consolidating below major resistance levels while miners keep cashing out their profits leading up to potential downfall in BTC prices in near future although no definite conclusion can be made without further confirmation from other metrics and technical analysis tools like RSI etc .