BTC tests critical resistance, but is a decline to $ 25,000 in the game? (Bitcoin price analysis)

BTC tests critical resistance, but is a decline to $ 25,000 in the game? (Bitcoin price analysis)

The Bitcoin price has been tending further down for several weeks and has lower maximum and lows. Nevertheless, there is hope that the potential for an upward rally has not yet been exhausted.

technical analysis

from: Edris

The daily chart

The price has recently dropped on the daily chart after he had not succeeded in breaking the important resistance brand of $ 30,000. The sliding 50-day average, which lies around the $ 28,000 mark, was also broken down and would act as a resistance until the price is below.

$ 25,000 in the short term seem to be the most likely goal because it is a strong level of support that the bulls can count on. The sliding 200-day average, which tends around $ 23,000 mark, could also be tested if the $ 25,000 mark was undercut.

It is important to note that the price is still above the sliding 200-day average, but it is technically a bull market.

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The 4-hour diagram

On the 4-hour chart it can be seen that the price has gradually dropped and a large bullish flag has formed below the $ 30,000 mark. These patterns are generally referred to as bullish continuation patterns when the price breaks through it.

Bitcoin is currently testing the resistance brand of $ 27,500. Due to the recent rejection at this level, however, it is likely that the lower limit of the pattern could be tested again in the coming weeks.

A declining outbreak from this channel and the level of support of $ 25,000 would be catastrophic for BTC owners, since the market could fall freely towards the $ 20,000 brand in a short time.

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onchain analysis

of Shayan

The output patterns inactive coins, which have been inactive for over 155 days, often reveal clear trends in the long -term prospects of Bitcoin. By examining the long-term owner-expenditure-profit quota (SOPR) based on monthly average values, we can identify extreme output points that coincide with the initial phases of a bullish market.

The attached graphic clearly shows how the key figure has exceeded a value of one, indicating that long -term owners make profits. Such events typically occur in the early phases of the Bitcoin bull market.

It is important to emphasize that this indicator primarily reflects long -term cycles that normally take months or even years before reaching extremes and not capturing short -term fluctuations.

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