Bitcoin price has not risen and appears to be struggling below the $ 60,000 mark. So far, BTC has lost 7% from last week, trading in the $ 55- $ 58,000 range, and has failed to regain the 50-day SMA.

BTC / USDT daily chart | Source: TradingView

Technical analysis

Bitcoin price hit a lower low yesterday. Today it went further back and headed for the critical support of the $ 53,000-58,000 zone – which we tracked in our previous analysis. The $ 53,000 level will be very supportive of both the technical and on-chain outlook.

From a technical point of view, this is the coincidence of support levels, including the long-term 38% fib retracement level and the support line that has existed since March 2020 and has acted as support on many occasions.

Therefore, the uptrend can resume after the price successfully confirms this level as support. On the other hand, the most notable resistance seems to be the 50-day MA (~ 60.6k $) along with the psychological level of 60k $.

Trading volume remained modest during this correction and bears still have the potential to strike at any time. Therefore, caution is advised in the near future. The RSI on the daily timeframe continues to decline (but has not hit the oversold area) despite a bullish divergence on the 4 hour chart as the RSI makes a higher low. To confirm this, BTC needs to hold above $ 53,000 and make a strong uptrend.

BTC / USDT daily chart | Source: TradingView

On-chain analysis

As for the on-chain outlook, we don’t see any serious signs of distribution.

Miners revert to accumulation mode, while older coins are not sold at this level.

Source: CryptoQuant

As reported by Bitcoin Magazine, the third largest Bitcoin whale has bought around $ 375 million more in BTC in the past 11 days – a clear sign that the company is banking on the upward trend to continue.

Therefore, if the next support holds, a bottom appears very close.

“If the bulls can hold the confluence of the uptrendline and Fib support levels while older coins and miners continue to hit HODL, then we think the bottom is very close.

$ 69K (Bitcoin’s current ATH) may not be the top of this cycle. The way ahead of us remains very open and the current decline is mainly due to the liquidation. “

You can see the price of the coin Here.

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Disclaimer: This article is for informational purposes only, not investment advice. Investors should research carefully before making a decision. We are not responsible for your investment decisions.

SN_Nour

According to Cryptopotato

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