Bitcoin Technical Analysis
The recent upward momentum of Bitcoin has hit a roadblock around the $38K mark due to selling pressures. However, price action indicates a potential short-term reversal with ongoing retracements towards the $35K threshold.
Daily Chart Analysis
After an attempt to reclaim the $38K resistance zone, the price faced rejection, leading to consolidation within this range, with mild volatility and subdued price movements. A bearish divergence suggests a possibility of short-term decline, but a short-term consolidation correction with minor retracements is the more likely scenario.
4-Hour Chart Analysis
Upon reaching the $38K resistance level, Bitcoin formed an ascending wedge pattern, indicating a potential market downturn. A head and shoulders pattern has also emerged, signaling a bearish reversal if the price breaches the pattern’s neckline. A long squeeze event could push the price below the ascending wedge pattern. Key support levels include the 0.5 Fibonacci retracement level at $32,300.
On-chain Analysis
The movement of Bitcoin from miner wallets to exchange wallets indicates selling pressure, with miners consistently involved in selling to introduce liquidity on these platforms. The flow of BTC from miners to exchanges is at its lowest level since 2017, suggesting that miners may be accumulating Bitcoin, potentially signaling bullish market sentiment.
Fresh Insights on Bitcoin Technical Analysis
Bitcoin experienced selling pressures around the $38K mark, leading to consolidation with potential short-term retracements. The market is signaling a bearish reversal, with the possibility of a long squeeze event pushing the price below key support levels. However, the flow of BTC from miners to exchanges is at its lowest level since 2017, suggesting potential bullish sentiment.
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