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Lately, the market has been relatively eventful, with bitcoin price showing some volatility but lacking a clear direction.
This uncertainty has traders wondering what the next move could be. However, if bitcoin price breaks above the $30K resistance area, there could be a positive turn, leading to a potential long-term uptrend.
bitcoin price analysis
By sleeping
daily chart
Taking a closer look at the daily chart, there is a bearish double-top pattern forming near the key $30K resistance area. Moreover, the price is facing a strong dynamic resistance from the mid-trendline of the ascending channel, which is resulting in some rejection.
Additionally, an extended noticeable divergence between price and the RSI indicator signals a possible change in market conditions. If the supply prevailing in this critical zone overcomes the demand for the cryptocurrency, the next target could be around the $28.5K level, which is in line with the 100-day EMA.
4-hour chart
Focusing on the 4-hours chart, it becomes clear that the price has entered a long consolidation zone after reaching the crucial $30K price area. Notably, this range coincides with a previous significant swing high, which provided strong resistance due to expanded supply.
Furthermore, the price has formed a broad wedge pattern, which often signals a potential reversal. If bitcoin breaks below the lower edge of the wedge, it could signal a medium-term reversal.
In conclusion, if the cryptocurrency faces rejection, its next target could be the stable support area around $28K.
on-chain analysis
By sleeping
The premium of a fund, such as the Bitcoin Trust, serves as a necessary indicator of the excess of the market value over the fund’s net asset value (NAV), which represents its underlying assets. In the period between January 2023 and today, the steady increase in the premium of the Bitcoin Trust indicates a significant increase in investor interest in acquiring this fund.
This trend is a sign of increasing demand for bitcoin in the market.
As the premium for Bitcoin Trust continues to rise, it narrows the gap between its market value and the actual market value of bitcoin contracts. This convergence is a clear indication that investors are becoming increasingly optimistic about bitcoin’s potential, and they are willing to pay a high premium to gain exposure to this digital asset.
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Disclaimer: Information found on Cryptopotatoes is from the cited authors. It does not represent the opinion of Cryptopotatoes to buy, sell or hold any investment. You are advised to do your own research before making any investment decision. Use the information provided at your own risk. See disclaimer for more details.
cryptocurrency chart by Tradingview.
