Bitcoin’s price continues to struggle to regain its footing above the $30K level, signaling a potential crash to $27K in the near future. Technical analysis reveals key factors to watch in the coming days that could determine the direction of BTC’s price movement.
On the daily chart, Bitcoin’s price has been consolidating below the $30K level, with the 50-day moving average currently around $29K. If this support level is broken, the next target in the short term could be the 200-day moving average at $27K. On the other hand, a breakout above $30K could lead to a rally towards $38K.
Looking at the 4-hour chart, Bitcoin has been forming lower highs and lows, with the $30K level now acting as a strong resistance. If BTC fails to break above $30K again, it could test the $27,500 support level. The RSI indicator is currently around 50%, offering little insight into the short-term direction of the market.
In terms of onchain analysis, Bitcoin has experienced significant fluctuations in the past two years, influenced by factors such as the pandemic, inflation concerns, and geopolitical tensions. Despite the recent bearish phase, the accumulation rate of Bitcoin seems to have surpassed that of the 2018 bear market, indicating that many market participants still see Bitcoin as a valuable asset with long-term potential.
Overall, the market is currently in a key area, and the price action in the coming weeks will largely depend on how Bitcoin reacts to this zone. Traders and investors should closely monitor the $30K and $27K levels as crucial support and resistance levels, respectively, to gauge the potential for a crash to $27K.
Disclaimer: This article is for informational purposes only and should not be construed as financial advice. The cryptocurrency market is highly volatile and unpredictable. Always do your own research before making any investment decisions.