Massive Rally for Bitcoin Only Possible if This Level Falls: BTC Price Analysis

2 months ago 22

Bitcoin’s price has failed to recover meaningfully after its drop from the $68K level. Yet, investors might still have hope, as several support levels are available.

Technical Analysis

By TradingRage

The Daily Chart

On the daily chart, the price has been consolidating below the 200-day moving average, located around the $63K mark. The market has also retested the moving average after breaking below it a couple of weeks ago but has been rejected to the downside.

Since then, the price has failed to hold above the $60K level and is currently approaching the $57K support level. If this level breaks, a drop toward the $52K level would be imminent. On the other hand, as long as the market is trading below the 200-day moving average, no sustainable rally could be expected.

The 4-Hour Chart

The 4-hour chart displays a much clearer picture of the recent price action. Since the market’s rebound from the $50K area, the price has been consolidating between the $60K and $57K levels.

Meanwhile, the bullish momentum is seemingly fading as the RSI has dropped below the 50% level once again. In this case, a breakdown of the $57K support zone and a decline toward the $52K area could be probable

On-Chain Analysis

By TradingRage

Bitcoin Coinbase Premium Gap

While Bitcoin’s price has been consolidating long-term, it could be insightful to search for the underlying reasons for this halt in bullish movement. This chart presents the Coinbase Premium Gap, which measures the difference between Binance’s BTC/USDT pair and Coinbase’s BTC/USDT pair. This metric is typically used to analyze the behavior of US investors, as they primarily use Coinbase.

As the chart suggests, the Coinbase Premium Gap has been negative on aggregate over the past few months, as American investors have seemingly been putting selling pressure on the market.

This behavior is also witnessed in the US stock markets as Americans have been bearish on risk assets. As a result, a potential recovery in the Coinbase Premium Gap can be a signal for the market to continue its bullish move. Yet, it might still take more time.