Bitcoin’s Recent Price Surge and Technical Analysis
Bitcoin has seen a significant increase in price over the past week, with a rise of around 15%. This article will examine the technical levels of Bitcoin and assess whether this rally has the potential to continue.
The Daily Chart
Looking at the daily chart, Bitcoin broke through the important resistance level at $27K, which was indicated by the convergence of the 100 and 200-day moving averages. The price surge continued, surpassing the $32K resistance and reaching a new yearly high. However, there is now a significant resistance region at $35K, marked by Fibonacci levels. If this level is secured, it could lead to a positive mid-term trend, but a setback or rejection could result in a consolidation correction phase.
The 4-Hour Chart
On the 4-hour chart, Bitcoin experienced consolidation between $25K and $32K before breaking above the upper threshold and establishing a new yearly peak at $35K. However, there is strong resistance at this level, which could slow down the upward trend and trigger a corrective phase. Support levels for Bitcoin would be within the range of Fibonacci retracement levels if a correction occurs. It is important to closely monitor price movements in the coming days as volatility may increase.
On-chain Analysis and Investor Sentiment
Bitcoin has been on an upward trajectory since the beginning of 2023 and recently reached a new yearly high at $34K after consolidating within a range of $25K to $31K. The NUPL metric, which measures investor profitability, is approaching the Belief-Denial Phase, indicating a prevalent optimistic sentiment in the market. However, the realization of profits may introduce short-term volatility.
Hot Take: Bitcoin’s Price Surge and Future Potential
Bitcoin has experienced a significant price surge recently, reaching new yearly highs. Technical analysis suggests that there is potential for a positive mid-term trend if key resistance levels are secured. However, there is also the possibility of a corrective phase and increased market volatility. On-chain analysis indicates an optimistic sentiment among investors, but the realization of profits may impact the market in the short term. It is important to closely monitor Bitcoin’s price movements in the coming days to assess its future potential.
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