2 Possible Scenarios for Bitcoin in the Next Few Days (BTC Price Analysis)

Over the past few weeks, bitcoin price has been consolidating in a narrow range after breaking below the 50-day moving average. The market is currently situated between two notable levels, from which a number of possible scenarios could unfold.

technical analysis

By: edris

The Daily Chart:

The price is yet to show a notable upward or downward movement on the daily time frame. If there is a rally in the coming weeks, the first resistance to watch is the 50-day EMA located near the $28K level, followed by the crucial $30K level.

On the other hand, for the holders, the key support areas to trust are the $25K level and the 200-day moving average near $23K. The RSI indicator remains below the 50% range without much movement, which shows the current bearish momentum and increases the chances of a downside move in the near term.

4 hour chart:

On the 4-hours chart, the price is residing inside an important descending channel. Although there was a recent push above the minor support at $26K, there is a strong possibility of a decline towards the lower boundary of the channel and the $25K support area.

Conversely, for a rally to happen, the market must first break the $27,500 resistance area. If this happens, the chances of a breakout above the channel and a subsequent retest of the resistance area at $30K will increase.

on-chain analysis

By: edris

bitcoin miners reserve

While the price of bitcoin has been relatively stable, examining on-chain metrics can help us understand the underlying dynamics.

The following chart focuses on the bitcoin miner reserve metric, which quantifies the amount of BTC held by miners, an important group within the ecosystem.

The data clearly shows a steady decline in this metric over the past 9 months, indicating that miners are selling their coins to cover operating expenses or to hedge risks in an uncertain macroeconomic environment.

This decline has intensified, indicating that miners are capitalizing on the recent price increase to sell their coins at higher levels. If this trend continues, a bearish reversal is likely in the near future. Continued selling pressure from miners could result in an oversupply of bitcoin in the market, leading to a possible drop in price.