Bitcoin’s price has been hovering around the $64K mark after bouncing back from the $56K support level. This has left many investors speculating whether we will see a new all-time high soon.
Technical Analysis
Looking at the daily chart, Bitcoin has been trading within a range of $64K to $68K. The market has struggled to break above the $68K resistance level and is currently testing the $64K support. If this support level is breached, the next target for the bears could be the 200-day moving average at around $61K. However, as long as Bitcoin remains above this moving average, the overall trend is considered bullish.
On the 4-hour chart, the price is showing a gradual decline within a falling wedge pattern. Bitcoin has found support at $64K and the lower boundary of the pattern. If the market breaks out of this pattern to the upside, we could see a rally towards the $68K resistance level. On the other hand, a breakdown below $64K is also possible, especially with the RSI indicating bearish momentum.
On-Chain Analysis
Analyzing the behavior of market participants can provide valuable insights. The Bitcoin Exchange Netflow chart shows the flow of BTC into and out of exchanges. Recent data indicates that there have been large withdrawals from exchanges, suggesting that investors are using the current pullback to accumulate more Bitcoin. The 30-day moving average of exchange net flows has been trending upwards, indicating a period of accumulation. This accumulation could potentially lead to a supply shock in the future, resulting in a significant price rally.
In conclusion, while Bitcoin’s price is currently consolidating, there are signs that investors are accumulating more BTC, which could lead to a bullish trend in the coming months. It is important for investors to conduct their own research and make informed decisions when it comes to trading cryptocurrencies.