Despite a rejection at the $30K resistance level and losing key support, Bitcoin continues to have multiple crucial zones to rely on for an upward trend.
The Daily Chart
Bitcoin has been consolidating below $30K since a failed breakout in April. The 50-day moving average broke to the downside near $28K due to bearish pressure in recent days.
The $25K support area and the critical 200-day moving average near $22K are both significantly important, and a break below them would be disastrous for buyers seeking an upward trend. Another break above the 50-day moving average would likely sabotage the bearish scenario and allow the price to surpass $30K once again.
The 4-Hour Chart
On the 4-hour timeframe, the recent consolidation becomes clearer, with the price oscillating between $30K and $27,500 for the past few weeks. The $27,500 level is a significant support zone and is currently under pressure, meaning that a breakdown could result in a drop towards $25K in the short term. The RSI also shows values below 50%, indicating a bearish momentum in this timeframe and further boosting the likelihood of a lower bearish continuation in the coming weeks.
Bitcoin Taker Buy Sell Ratio
Bitcoin’s price has been consolidating below $30K following a rally since the beginning of 2023. The recent indecisiveness shown by the price has led many investors to wonder whether the bear market is really over or whether the price will be able to make it past $30K. Therefore, analyzing the futures market sentiment could provide helpful insights.
The Taker Buy Sell Ratio metric indicates who is dominant, with values above 1 pointing to long traders and values below 1 indicating the bear’s dominance. The chart shows that this metric has been trending below 1 over the last few months, which could be one of the reasons why BTC has failed to break above $30K. This aggressive selling pressure could reverse the trend and push the price lower if things remain the same. While BTC has rebounded since the beginning of the year, it is possible that the bear market is not yet over.