As an experienced analyst, I closely monitor the Bitcoin market’s price action and trends to provide informed insights. After a strong bullish surge towards $71K, Bitcoin faced selling pressure at the significant resistance level of $72K. This rejection may be due to the robust support region around $66K in the form of the 100-day moving average.
After reaching a peak near $71,000, Bitcoin experienced increased selling activity, causing a minor price decrease.
The cryptocurrency has reached a strong level of resistance that could cause it to bounce back and continue its upward trend in the near future.
Technical Analysis
By Shayan
The Daily Chart
As a researcher studying the Bitcoin market, I’ve discovered through an in-depth examination of the daily chart that after experiencing a surge in demand and reaching the notable resistance level at $72,000, Bitcoin faced selling pressure. Consequently, there was a minor bearish correction as a result. The price range between $72,000 and $74,000 holds significant significance, having thwarted numerous previous upward attempts in recent months.
Instead of “On the other hand,” you could say “However.” In simpler terms, “Bitcoin’s price finds significant support at the 100-day moving average of $66K. This area is reinforced by strong buying interest, which might prevent further price declines. Yet, Bitcoin’s price remains trapped between the $66K support and the resistance level at $72K. A breakout beyond this resistance could trigger a clear upward trend.”
The 4-Hour Chart
As I observed the 4-hour Bitcoin chart, I noticed a surge in buying pressure that propelled the cryptocurrency’s price up to $72K. Reaching this level, Bitcoin touched the upper boundary of a prolonged descending wedge formation. Yet, a substantial amount of supply lurked in this critical zone, which led to a waning bullish momentum and a modest correction in the form of sideways consolidation.
As a researcher studying the cryptocurrency market, I’ve noticed that Bitcoin has recently formed a smaller wedge pattern around the $70,000 mark. The price of Bitcoin is getting close to this pattern’s narrow range. If Bitcoin manages to break through the upper boundary of this wedge, it could be a sign of an extended bullish trend. In such a scenario, the key resistance level at $74,000 would be the next target for Bitcoin’s price increase.
At present, Bitcoin’s price is confined between a narrow boundary set by the wedge formation. A soon-to-occur breakout from this limit will determine Bitcoin’s future trend.
On-chain Analysis
By Shayan
Whales play a pivotal role in shaping crypto market trends by managing substantial investments that can greatly influence price fluctuations. Examining their profits sheds light on market attitudes and situations. The enclosed graph depicts the realized price for the veteran whale group, representing the percentage of Bitcoin supply currently generating a profit.
As a researcher studying the Bitcoin market, I’ve observed that the realized price of new whale transactions has played a crucial role in supporting Bitcoin during its bullish trend towards the all-time high (ATH) of $74,000. When Bitcoin encountered rejection at this level and started to correct, the realized price of these significant investors acted as a strong support, fueling a notable upswing. Currently, this realized price, around $62,800, functions as a vital short-term support area for Bitcoin buyers.
As a crypto investor, I’ve noticed that the recent profits reaped by new large-scale Bitcoin investors, or “whales,” based on the realized price metric, indicate their belief in Bitcoin’s value surpassing this critical support level. This optimistic viewpoint supports a bullish stance as long as the Bitcoin price stays above $62,800.
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2024-06-03 07:52