Bitcoin’s price has been decreasing consistently during the past week, and there may still be more to come. However, the bearish momentum is not as strong as expected, and there are several support levels available for the market to depend on.
Technical Analysis
By: Edris
The Daily Chart
When looking at the daily timeframe, the price has been declining since it was rejected from the $30K resistance level in April, and it has also dropped below the 50-day moving average located around the $29K mark.
Based on the recent candlestick patterns, it is possible that a bullish pullback to the broken moving average could occur. However, the price may still drop towards the static support level of $25K before returning to higher levels.
The 4-Hour Chart
On the 4-hour chart, BTC has fallen below the minor support level of $27,500 and is likely to test the $25K zone in the upcoming days. However, as the RSI rises above the oversold region and a clear bullish divergence is visible between two recent lows, a retest of the $27,500 level, which now serves as resistance, might occur in the short term.
Overall, the market structure on this timeframe is bearish until the price rallies above the $30K resistance level.
The Bitcoin network has achieved an all-time high in activity, with a new record of 682,000 daily transactions. This is a significant increase from the 250,000 daily transactions seen at the beginning of 2023. The primary reason for this surge is the growing popularity of ordinal inscriptions, mainly used to create digital assets.
Unfortunately, the increase in Bitcoin activity and the trend toward BRC-20 tokens have had a negative impact on the market. The Bitcoin network has become crowded, resulting in users having to pay higher transaction fees. This situation affects all Bitcoin participants, including everyday users and miners. Therefore, trading in the BTC markets requires additional caution, as the market may experience high volatility.
