Bitcoin (BTC) Technical Analysis
The recent upward momentum of Bitcoin (BTC) has hit a roadblock around the $38K mark due to selling pressures. Nonetheless, price action indicates a probable 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 likelihood 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 (BTC) formed an ascending wedge pattern, indicating a probable market downturn. A head and shoulders pattern has likewise emerged, signaling a bearish reversal if the price breaches the pattern’s neckline. A long squeeze event might propel 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 (BTC) from miner wallets to exchange wallets indicates selling pressure, with miners consistently involved in selling to introduce liquidity on these platforms. The flow of Bitcoin from miners to exchanges is at its weakest point since 2017, suggesting that miners could be accumulating Bitcoin, potentially signaling positive trend market sentiment.
Fresh Insights on Bitcoin (BTC) Technical Analysis
Bitcoin (BTC) experienced selling pressures around the $38K mark, leading to consolidation with probable short-term retracements. The market is signaling a bearish reversal, with the likelihood of a long squeeze event pushing the price below key support levels. Nonetheless, the flow of Bitcoin from miners to exchanges is at its weakest point since 2017, suggesting probable positive trend sentiment.
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