As a seasoned crypto investor with a few bear market cycles under my belt, I’ve learned to read between the lines when it comes to Bitcoin’s price action. The recent consolidation has been a cause for concern, but the technical and on-chain analysis presented here offer valuable insights into the current state of the market.
The price surge of Bitcoin has slowed down over the past few months as the market experiences consolidation. However, significant changes lie ahead, which could potentially bring improvements or setbacks.
Technical Analysis
By TradingRage
The Daily Chart
As an analyst, I’ve observed on the daily chart that Bitcoin’s price has been confined to a sizable descending channel. Lately, the midline of this channel has thwarted my downward progression, and now, the market is probing the $60K threshold again.
As an analyst, I would warn that if the current support level gives way, it’s highly probable that the entire trading channel will crumble, potentially leading to a significant price decline towards the $52K support area.
The 4-Hour Chart
Examining the 4-hour timeframe offers greater clarity. The price previously touched the middle line of the channel but was met with strong resistance. However, today’s price movement provides the most compelling indication, as it has been declining steadily.
As a crypto investor, I closely monitor the Relative Strength Index (RSI) to gauge market momentum. When the RSI displays values below the 50% mark, it’s a clear sign that sellers are currently in control of the market. This situation could potentially lead to further price declines if the crucial $60,000 support level succumbs to downward pressure.
On-Chain Analysis
By TradingRage
Bitcoin Exchange Reserve
With Bitcoin’s price finding it challenging to build upon its upward momentum and set a new peak, bears have capitalized on the situation, appearing to instigate an additional drop in value.
this graph illustrates the exchange reserve metric along with its 30-day average moving line. An increase in these numbers often signals a bearish trend, implying that investors are transferring their coins to exchanges for selling purposes.
According to the graph, the exchange reserve figure has been increasing, surpassing its 30-day moving average as indicated. This additional supply coming from the spot market plays a role in the current market correction.
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2024-05-11 15:44