As a seasoned analyst with extensive experience in the cryptocurrency market, I have closely monitored Bitcoin’s price action over the past few weeks and am encouraged by the recent bullish momentum. The technical analysis indicates that Bitcoin has broken above key resistance levels on both the daily and 4-hour charts, potentially paving the way for a rally toward new record highs.
After nearly two months of price declines, Bitcoin‘s value is experiencing a surge once more, giving hope to optimistic investors. The bullish sentiment is growing stronger as the market attempts to reach new peak prices. However, achieving this goal remains uncertain.
Technical Analysis
By TradingRage
The Daily Chart
Bitcoin’s price trend has exhibited a corrective pattern lately. After reaching $75K, the cryptocurrency has been forming successively lower peaks and troughs. This downward trajectory within a descending channel indicates that the market is in a corrective mode, rather than undergoing a complete bearish turnaround.
As a crypto investor, I’m thrilled to see the price break above the channel’s midline at last. This could be a sign that we’re in for a bullish run and a rally towards higher prices. If this trend continues and the price manages to surpass the upper boundary of the channel, then we can look forward to some significant gains in the market.
The 4-Hour Chart
On the 4-hour chart, the price has recently surpassed the middle line of the downward trendline and rechecked it. Consequently, the market is now aiming for the $68,000 resistance. A leap above this threshold could lead to a surge beyond the trendline and toward the record high of $75,000.
When the Relative Strength Index (RSI) registers values exceeding 50%, it indicates a bullish trend, making the proposed objectives seem attainable.
On-Chain Analysis
By TradingRage
Bitcoin Exchange Reserve
In the past week, as Bitcoin dipped below the $60K mark, numerous investors have become alarmed and chose to offload their coins from their holdings, leading to a noticeable increase in deposits into exchanges. According to the exchange reserve chart, this trend is indicated by the metric surpassing its 30-day moving average.
As a crypto investor, I’ve noticed that with the market bouncing back above $60K, my exchange reserves have once again decreased, falling below the 30-day moving average and setting a new low. This suggests to me that other investors are similarly withdrawing their coins from exchanges, likely anticipating an extended price rally.
As a crypto investor, I’ve noticed that decreased selling activity in the Bitcoin market could result in a supply shortage. This scarcity of available Bitcoins for sale might then push the price even higher, potentially leading to a new all-time high.
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2024-05-17 17:48