The price of Bitcoin is causing doubts among analysts and investors, who believe that Bitcoin has failed to take action, despite maintaining a high level of $30000 despite being bearish at the resistance level of $32000.According to CryptoQuant's online analysis, the largest cryptocurrency has been stuck in a narrow corridor for the past three months
The price of Bitcoin is causing doubts among analysts and investors, who believe that Bitcoin has failed to take action, despite maintaining a high level of $30000 despite being bearish at the resistance level of $32000.
According to CryptoQuant's online analysis, the largest cryptocurrency has been stuck in a narrow corridor for the past three months. The on chain analysis platform claims that the answer lies in the fundamental factors of the agreement, such as supply and miner activities
Although we will explore the fundamental position of Bitcoin to some extent, BTC still feels the pressure of a strong bear market - falling 1% to $30005. The trading volume is as high as $14 billion, with a market value of $582 billion.
The largest gold coin seems to have followed in the footsteps of BTC, falling 1.6% to $1898. As discussed in the previous analysis, repricing must recover support of $1900 in order to maintain an upward trend of over $2000.
If Bitcoin loses support for $30000 in price, what should be done next?
As shown in the daily chart, the narrow rectangular integration of Bitcoin prices shows that the tug of war between bull and bear markets is approaching the limit of the pull. This means that investors should be prepared for two conflicting outcomes.
Suspending and maintaining real-time support for $30000 can prove that it has been reduced to $28000 and $25000 in this order.
Short positions below $30000 may exacerbate short selling pressure, causing instability in important but secondary support areas, as emphasized by the 200 day moving average (EMA) (purple) and subsequent buyer congestion ($29000).
From the perspective of the Moving Average Convergence Divergence (MACD) indicator, increasing the credibility of bearish prospects is a definite selling signal.
Although there have been short selling signals, as the MACD line crosses blue above the red line, short traders should not underestimate the short-term support of the 200 day moving average, as this may be a greater breakthrough for Bitcoin prices with higher liquidity above $32000.
Another result is that Bitcoin prices have broken through the rectangular pattern, and Bitcoin prices have the appropriate conditions to rise, including improved investor sentiment, increased trading volume, and continuous expansion of liquidity.
Some of the most critical levels to observe the future, including support for $30000 and another at the 200 day moving average. From a positive perspective, the breakthrough above the rectangle and the resistance of $32000 may mark the beginning of a rebound to $35000 and $38000.
The reason why Bitcoin failed to move - password
The on chain data provided by the analysis platform CryptoQuant attempts to explain what caused Bitcoin prices to break through narrow integration. The company's researchers found that "since April this year, the supply of short-term holders has started to decrease." This group continues to sell BTC wallets, putting greater pressure on the market.
According to the realization price of mining inflows, "miners are actively selling their Bitcoin reserves." Researchers believe that this is not a unique phenomenon as it mimics the behavior of miners before the expected halving in April 2024.
As mining activities become increasingly difficult in each four-year cycle, miners often halve their purchases of equipment after selling for several months to improve efficiency.
Another factor that may hinder the price breakthrough of Bitcoin may be the volatility index. After considering the inflow and outflow of funds into the BTC market, the volatility index shows a significant decrease in market activity since April 2023.
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