BTC loses 3 % weekly due to massive altcoin weekend outbreak (Bitcoin price analysis)

BTC loses 3 % weekly due to massive altcoin weekend outbreak (Bitcoin price analysis)

The Bitcoin Prize continues to drop gradually without there being signs of relaxation. Nevertheless, the cryptocurrency approaches a significant level of support that has the potential to trigger an upward movement and end the recent downward trend.

technical analysis

from: edris

The daily chart:

The Bitcoin price on the daily chart gradually drops and approaches the critical level of support at $ 25,000 after it has been faced several times with rejections by the sliding 50-day average. The importance of the moving 200-day average of around $ 24,000 cannot be assessed highly enough, since it serves as an important indicator for the prevailing trend. Therefore, it is crucial for Bitcoin to stay above it.

A breakthrough under the level of support of $ 25,000 and the sliding 200-day average could probably have serious consequences and possibly lead to a quick decline towards $ 20,000 and extend the continued bear market.

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The 4-hour diagram:

When looking at the 4-hour chart it becomes clear that the price of Bitcoin remains within a significantly descending channel and is currently moving to its lower border. This downward movement is the result of a strong outbreak below the level of support of $ 26,000. In addition, the RSI indicator tends with values below 50 %.

It is therefore likely that the price will test the $ 25,000 mark in the coming weeks and possibly reach the lower trend line of the channel.

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On-chain-analysis

by: edris

Bitcoin-cleaner sopr

The Bitcoin price met with considerable resistance in the $ 30,000 mark and could not break it. Although this resistance is remarkable from the point of view of the technical analysis, there are fundamental reasons for this rejection.

The adapted SOPR metric displayed in the diagram offers insights into the investor behavior. Values over 1 indicate a sale of Bitcoin with a profit, while values under 1 indicate a sale with loss.

After about a year, the key figure finally exceeded 1, which indicates that investors sell by the $ 17,000 mark and the youngest rally with profit after recovery of the price.

This sales pressure, however, has prevented the Bitcoin price from exceeding the $ 30,000 mark, and is currently leading to a decline. If no new demand comes onto the market, this sales behavior can lead to further price returns.

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