Bitcoin Price Surges, But $30K Resistance Holds Strong
Bitcoin experienced an unexpected surge in price, surpassing multiple significant resistance levels. However, the key obstacle at the $30K mark remains unbroken. On the daily chart, the 50-day moving average around $27K has provided support for the price. It has bounced back from this level and successfully broken above both the $28K resistance level and the 200-day moving average.
Despite closing above these levels, yesterday’s daily candle still had a large wick to the upside. To have confidence that the $30K resistance zone will be breached, today’s daily candle needs to hold above the 200-day moving average. Otherwise, it could be another bull trap, leading to a subsequent price crash.
The spike in price was triggered by a false report of an approved spot Bitcoin ETF.
The 4-Hour Chart
On the 4-hour chart, Bitcoin has broken through the $28K resistance level with momentum after finding support around $27K. The market is currently retesting the broken resistance level and holding above it. If the price remains above this level, it’s likely that a rally toward the $30K resistance zone will occur. However, the RSI indicator suggests an overbought condition, indicating a potential fake breakout and a bearish reversal.
On-Chain Analysis
Bitcoin Taker Buy Sell Ratio
The recent surge in Bitcoin’s price has brought it closer to the crucial $30K resistance level once again. The taker buy-sell ratio metric, which measures whether buyers or sellers are executing orders more aggressively, has been trending below 1 for several months. However, with the price increase, this metric is also rising. Although still below 1, if the trend continues and the metric approaches and surpasses 1, it could signal a new bullish phase for the mid-term market outlook.
Hot Take: Bitcoin’s Resistance Battle Continues
Bitcoin’s price surge has provided some optimism, but the $30K resistance level remains a significant challenge. While technical analysis shows potential for further upward movement, caution is advised due to the possibility of a bearish reversal. On-chain analysis suggests that a sustained rise in the taker buy-sell ratio metric could indicate a shift towards a more bullish market. Investors should closely monitor price movements and key levels to make informed decisions in this ongoing battle between bulls and bears.
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