Bitcoin’s price has been trending upwards since the beginning of 2023. However, it has recently shown signs of a reversal after being rejected at the $30K resistance level.
Technical Analysis
By: Edris
The Daily Chart
The price has been consolidating since its failure to break above the $30K resistance level. The 50-day moving average has provided support, but is currently being broken below the $28K mark.
In the event of a valid bearish breakout, the next probable target would be the $25K support level, followed by the key 200-day moving average, which is trending around the $22K area. The RSI has also dropped below the 50% threshold recently, indicating a potential short-term decline as momentum shifts bearish.
The 4-Hour Chart
On the 4-hour chart, it is evident that the price has been bouncing within a tight range between the $30K and $28K levels and is currently testing the latter. Should a breakdown occur, a rapid plunge toward the $25K zone could be expected in the near term.
However, the RSI approaching the oversold area increases the probability of the price rebounding from the $28K level and pushing towards the $30K resistance once more. Nonetheless, from a classical price action standpoint on both the daily and 4-hour timeframes, the bearish scenario seems more probable.
Onchain Analysis
By Shayan
Due to the rise in Bitcoin transactions on Sunday, fees paid to miners increased significantly. This pattern, while uncommon during bear markets, is frequent at bull market tops.
The growing use of the Taproot update, which allows for the inclusion of NFTs and the BRC-20 token on the Bitcoin blockchain, may be related to the increase in transaction fees. While this may be a drawback for routine transactions, it is advantageous for mining earnings.
Furthermore, this shift has caused changes in other on-chain metrics, such as a significant increase in the number of active addresses and transactions. This could be seen as a positive sign, marking the beginning of a bull market.
