Bitcoin’s Price Consolidates Above $25K Support Level
Bitcoin’s price has been consolidating above the $25K support level following a recent drop from the key $30K zone. However, there is still much work to do for the price to reach a new high and break past $30K.
Technical Analysis by Edris
On the daily chart, the price has been rejected from the $25K support level and is trending higher. The market needs to break through the significant resistance levels of the 50-day and 200-day moving averages around the $28K mark for a retest and potential breakout from the $30K zone. The RSI indicator also indicates that momentum is in favor of the buyers.
The 4-Hour Chart
The 4-hour timeframe provides a clearer picture of the recent price action. The market is currently attempting to break above the upper boundary of the large falling wedge pattern. If successful, the price is likely to rally towards the $30K resistance level in the short term, as this is a classic bullish reversal pattern. The RSI’s recent bullish divergence further validates the reversal scenario.
On-chain Analysis by Edris
Bitcoin‘s price has been decisively rejected from the $30K resistance level and has been trending down. This price decline has affected investors, and analyzing its effects could provide valuable insights.
The Short-Term Holder Spent Output Ratio (STH SOPR) metric indicates whether short-term holders who have bought their coins in the past 6 months are selling at a profit or a loss on aggregate. Values above 1 show profit realization, while values below 1 indicate realizing losses. The STH SOPR metric has been trending below 1 over the last few weeks following the recent price drop. This suggests that short-term holders are selling their coins below their buying price out of fear and to prevent further losses. If this behavior continues, the market might be overwhelmed by the resulting excess supply and drop lower.
Sources: [TradingView](https://www.tradingview.com/ideas/cryptocurrency/), [CryptoQuant](source)
Note: The information provided is based on the opinions of the quoted writers and does not represent the opinions of this publication. Readers are advised to conduct their own research before making any investment decisions.
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About the author - J-S Tremblay
I've been involved in the cryptocurrency world since 2016 and trading since 2019. I started Moon and Lambo in 2021. I'm passionate about crypto and love to share my knowledge. I hate bankers and I hope that cryptocurrency will change the financial world for the better. View full profile...
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