• Bitcoin price is currently on a downward trajectory since it faced resistance at $30K in April.
• Technical analysis shows that the 50-day moving average acted as a strong resistance, causing a downward rejection near the $28K level.
• On-chain analysis suggests that there is potential for growth if Bitcoin breaks above the $27,500 resistance area.
Bitcoin Price Analysis
The price of Bitcoin is currently on a downward trajectory since it faced resistance at $30K in April. On the daily timeframe, the 50-day moving average acted as a strong resistance, causing a downward rejection near the $28K level. Meanwhile, looking at the 4-hour chart reveals that Bitcoin has faced significant barrier at the $27,500 resistance level and experienced a sharp decline thereafter.
On the daily timeframe, following yesterday’s rebound, the price is testing the 50-day moving average again. A bullish breakout would result in a rally towards the $30K level, while another rejection would lead to a drop-down to the $25K support level and key 200-day moving average located around the $24K mark.
On The 4-hour Chart: The short term support level at $26K has also been breached, indicating a continued downward movement with strong momentum. However, BTC price has now reversed following RSI’s overbought signal and is currently retesting the $27500 resistance area. If it breaks above this point, it will likely break out of its descending channel and pave way for an upward movement towards reaching back its all time high of 30k.
On Chain Analysis
Shaya’s on chain analysis suggests that there is potential for growth if Bitcoin breaks above its current resistance area of 27k 500 and resumes its uptrend towards 30k or even higher prices levels than before . This could be achieved via increase in buying volumes or by other means like institutional investments etc . However , only time will tell whether this hypothesis holds true or not .
It can be concluded from this analysis that Bitcoin faces significant hurdles to reach previous highs due to technical factors such as moving averages acting as resistances and overall bearish sentiment prevailing in market however , on chain analysis suggests possibility of positive movements if certain conditions are met . Investors should keep an eye out for any developments related to these conditions in order to take advantage of any opportunity presented by them .
Investors should remember that cryptocurrency markets are highly volatile environments where prices can swing greatly within short periods of time so risk management should always be kept top priority when investing into crypto assets .