The price has hit a crucial resistance zone where the 100 and 200-day moving averages cross after a period of persistent upward momentum marked by higher highs and higher lows.
At this critical point, the price may fall back and start a decline, or it may break through the zone and target $30K.
The Daily Table
According to a daily chart analysis, Bitcoin had a period of stabilisation near the $25K threshold before picking up speed and starting an upward trend. The price approached a key resistance area at $28K, where the 100-day and 200-day moving averages converge, as a result of this bullish surge.
Bitcoin’s Crossroads: $25K or $30K Next? BTC Analysis,Bitcoin’s Crossroads: $25K or $30K Next? BTC Analysis
Given the significance of this resistance zone, there is a good chance that it will be rejected, which may cause a retreat and possibly even start a severe decline. There is a remote possibility, nevertheless, that buyers will maintain the price and drive it above the moving averages, reviving the positive mood in the market.
Whatever the result, it is essential to keep a careful eye on the price action over the next several days, as higher volatility is anticipated in the medium run.
The Chart for 4 Hours
Turning our attention to the 4-hour timeframe, Bitcoin had a substantial decrease before finding good support near $25K. During the ensuing upswing, the price continuously exceeded earlier highs, suggesting that market participants’ interest was expanding.
The cryptocurrency has, nonetheless, been moving in an upward channel and has seen rejections from the upper trendline, which coincides with the third Fibonacci retracement level at 0.618. This pattern implies that sellers are in control and points to the possibility of another drop in the price of bitcoin.
In spite of these negative signals, a surprising surge towards the $30K barrier might be possible if the price can abruptly break through this crucial resistance zone and exhibit strength. The short-term direction of Bitcoin will be determined by the market’s reaction to these pivotal levels.
Total Transactions (Mean)
Network activity has significantly increased after the recent spike in Bitcoin’s price. One typical way to quantify this activity is to utilise the on-chain transaction count. The price of Bitcoin has historically correlated positively with this measure, suggesting that spikes in activity frequently result in price rises.
The 7-day moving average of the mean transaction count is displayed on the chart. Since the beginning of Bitcoin’s price increase towards $30K, this measure has been rising. The number of transactions has, however, recently decreased dramatically.
This is not encouraging and may soon have a detrimental effect on the market. The price can soon drop if network traffic does not increase once again.
Bitcoin’s Crossroads: $25K or $30K Next? BTC Analysis,Bitcoin’s Crossroads: $25K or $30K Next? BTC Analysis,Bitcoin’s Crossroads: $25K or $30K Next? BTC Analysis