After a gradual correction phase spanning the past couple of months, Bitcoin’s price has experienced a recent surge. However, before anticipating a sustained long-term rally, the price must overcome a significant resistance level.
Technical Analysis
By: Edris
The Daily Chart:
After facing rejection at the $30K resistance level in April, Bitcoin’s price has been gradually declining on the daily chart. However, a recent rebound from the $25K support level has sparked a continuous rally in the past few days. The price effortlessly surpassed the 50-day moving average at around $27K and is now approaching the $30K level again.
If a bullish breakout occurs, it could generate optimism among investors for further upward movement in the medium term, with the next substantial resistance area situated around $38K.
The 4-Hour Chart:
On the 4-hour chart, the price has experienced a rapid and steep rally after a V-shaped reversal from the $25K support zone.
This rally has resulted in a break above the sizeable descending channel and the $27,500 level, which may now serve as a support level. However, caution is warranted as the RSI indicator signals the cryptocurrency is overbought. This suggests that a period of consolidation or correction could be likely to occur shortly, possibly before any potential breakout above the key $30K resistance level.
On-chain Analysis
By: Edris
Bitcoin Miner Reserve
Bitcoin miners have displayed unusual behavior recently, as indicated by on-chain metrics, specifically the miner reserve metric. It measures the amount of BTC held in miners’ wallets, and there has been a noticeable and significant increase in it, suggesting that a large amount of BTC has been added.
This is noteworthy because it comes after a period of decline, during which miners sold off their coins amidst the bear market.
The exact reason for this sudden rise in miner reserves is unclear. However, if they hold on to these newly acquired coins for the long term, it could potentially have a positive impact on the price of Bitcoin.
By retaining their coins instead of immediately selling them, miners contribute to a decrease in the immediate selling pressure on the market, which can create a more favorable supply-demand balance and potentially support upward price movement.
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