Bitcoin price is stuck in a tight static range between $25,000 and $30,000 and is consolidating with no clear direction. It must break out of this critical area to determine its future direction.
Technical Analysis
By Shayan
daily chart
Bitcoin price has formed an ascending channel during the intraday period and is attempting to surpass the upper trend line. However, the upper bound of the channel roughly coincides with the main $30,000 resistance region, creating a robust barrier on Bitcoin’s path.
On the upside, the crucial $25,000 support region coincides with the 50-day moving average and the channel middle border, providing significant support for the price.
Considering all of the above, the price is currently stuck between the significant $25,000 support region and the significant $30,000 resistance. A breakout of this range would potentially remove uncertainty and create distortion for the cryptocurrency.
Source: TradingView
4 hour chart
While bitcoin’s price has been consolidating in the $30,000 and $25,000 range, it attempted to surpass the $29,000 level three times but each attempt failed, resulting in an ascending triangle pattern. If the price breaks below the lower trendline, a drop towards the $25,000 level is imminent.
On the other hand, if the price manages to break out of the upper trendline, it could rally towards the critical $30,000 level and a possible breakout. However, future price action and a breakout from the current range will determine Bitcoin’s overall situation in the medium term.
Source: TradingView
On-Chain Analysis
From Edris
Bitcoin price has been rising since early 2023 and many investors are making profits again. The Net Unrealized Profit/Loss (NUPL) metric presented in the chart shows the difference between Market Cap and Realized Cap divided by Market Cap.
Assuming that the last movement is the result of a buy, NUPL gives the total profit/loss of all coins represented as a ratio. It could be interpreted as the ratio of investors making profits. Values above 0 indicate that investors are making profits, and an increasing trend in value means that more investors are starting to make profits.
Considering the recent uptrend in NUPL, more investors are coming back into profit. While this could be interpreted as a signal of the start of a new bull market, these investors could soon start to take profits, which could lead to short-term corrections due to rising selling pressure.
Source: TradingView
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Cryptocurrency charts from TradingView.
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