Bitcoin Price Analysis: The Daily Chart
Bitcoin has been on a strong uptrend since the start of 2023, consistently surpassing previous swing highs. It has now reclaimed the critical resistance at $40K, indicating a significant presence of buyers in the market. However, it has reached a crucial resistance zone at $45K and the upper boundary of a multi-month ascending channel. This suggests that the market may consolidate and correct before determining its next move.
BTC on The 4-Hour Chart
On the 4-hour chart, Bitcoin experienced sideways consolidation before unexpectedly surging above the $40K resistance level. It is now targeting the $45K resistance region. But there is existing supply near this level and a bearish divergence between the price and RSI indicator, indicating a need for consolidation before the next move. Potential support levels for Bitcoin would be within the 0.5 and 0.618 Fibonacci retracement levels.
On-chain Analysis
The futures market sentiment can provide insights into Bitcoin’s health and potential direction. Positive funding rates in the perpetual futures market suggest a bullish sentiment among long-position traders. However, this also raises concerns about a possible long-squeeze event if this pattern continues. Monitoring funding rates closely will be crucial to assess sustainability and identify any risks.
Hot Take: The Future of Bitcoin’s Price
Bitcoin has shown significant bullish momentum, reclaiming key resistance levels. While there are signs of potential consolidation and correction, positive sentiment in the futures market suggests continued upward movement. However, monitoring funding rates will be important to identify any risks, such as a long-squeeze event. Overall, Bitcoin’s price remains volatile, but with careful analysis and observation of key indicators, you can make informed decisions about your investments in the cryptocurrency.
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