Bitcoin price has been consolidating between the $20K and $24K level over the past two months, after a quick crash from the $30K level. The support area between $17K and $20K has held up well, pushing the cryptocurrency higher towards the $24,000 resistance on multiple occasions but has so far failed to overcome it.
At the moment, price action is indicating that Bitcoin may finally surpass this important level on the upside, which could pave the way for a rally towards the $30K supply zone. The 100-day moving average is currently at the $26,000 level, and it is likely to offer some resistance. Conversely, in the event of a downward pullback, the 50-day moving average – currently at $21,000 – would likely act as support.
4 hour chart
On the 4-hour time frame, the price continues its attempt to push the bearish flag pattern to the upside, after rejecting it lower for the third time. However, it appears that a smaller bullish flag pattern is forming and the price is currently crossing it. Flags are continuation patterns and a bullish breakout from a bullish flag could trigger another impulse towards the upper trendline of the larger pattern.
The price will likely break above it. In addition, the RSI is still hovering around the 50% figure. This indicates that neither the bears nor the bulls are in control and the momentum is in equilibrium. Forecasts are likely to change after the weekend.
The market appears to be looking for direction, but the big players are holding out. After Powell’s speech in the past weeks and the Federal Reserve’s decision to raise interest rates, the price of Bitcoin rose beyond the “realized price”, a critical threshold for maintaining the price.
Thus, to exceed the achieved price level again, greater volume and tremendous selling pressure are required. The MVRV indicator makes it easy to track the price of Bitcoin in relation to its realized value. It shows how the cryptocurrency rose last week from undervalued territory. However, despite the rapid rally from the indicated area, the 365 day moving average still shows room for another big shake-up based on the previous cycles.
Therefore, before the major upside, another downside is likely given the current market confusion and uncertainty as well as the current stagnation in the global economy.
Binance Free $100 (Exclusive): Use this link to sign up and get $100 free and 10% off on Binance Futures first month (Interests).
PrimeXBT Special Offer: Use this link to register and enter the code POTATO50 to receive up to $7,000 on your deposit.
Disclaimer: The information in CryptoPotato is that of the quoted authors. It does not represent the opinions of CryptoPotato regarding buying, selling or holding any investments. You are advised to do your own research before making any investment decisions. Use the information provided at your own risk. See disclaimer for more information.
Cryptocurrency Schemes by TradingView.