Bitcoin’s price has been consolidating in a static range of $25K to $30K, indicating a lack of clear direction. It needs to break out of this critical range to determine its future direction.
Bitcoin’s price has formed an ascending channel on the daily timeframe and is attempting to surpass the upper trendline. However, the channel’s upper boundary roughly aligns with the major resistance region of $30K, creating a robust barrier in Bitcoin’s path.
On the other hand, the $25K crucial support region aligns with the 50-day moving average and the channel’s middle boundary, providing significant support to the price.
Considering all of this, the price is currently stuck between the significant support region of $25K and the substantial resistance at $30K. A breakout from this range would potentially eliminate the uncertainty and provide a bias for cryptocurrency.
While Bitcoin’s price has consolidated within the $30K and $25K range, it attempted to surpass the $29K level three times, but each attempt failed, resulting in an ascending triangle pattern. If the price drops below the lower trendline, a decline toward the $25K level is imminent.
On the other hand, if the price manages to break out from the upper trendline, a spike towards the critical $30K level and a possible breakout could occur. However, future price action and breakout from the current range will determine Bitcoin’s overall situation in the mid-term.
Bitcoin’s price has been rising since the beginning of 2023, and many investors are getting back in profit. The Net Unrealized Profit/Loss (NUPL) metric, which is demonstrated on the chart, shows the difference between market cap and realized cap divided by market cap.
Assuming that the latest movement is the result of a purchase, NUPL indicates the total amount of profit/loss in all the coins represented as a ratio. It could be interpreted as the ratio of investors who are in profit. Values over 0 indicate investors are in profit, and an increasing trend in value means more investors are beginning to be in profit.
Considering the recent uptrend in NUPL, more investors are getting back into profit. While this could be interpreted as a signal for the beginning of a new bull market, these investors could soon start realizing their gains which could lead to short-term corrections due to rising selling pressure.