Here are two possible outcomes for Bitcoin this week: BTC Pri Cryptocurrency scrgruppen
Bitcoin price is currently in a critical zone, and its reaction in the next few days will likely determine the market direction in the coming weeks.
Technical Analysis
by Idris
Daily chart
The price recently crossed the $27,500 resistance level on the daily time frame after breaking above the 50-day moving average around the $26,000 mark. However, the price was rejected by the 200-day moving average near the $28,000 level, which led to a pullback to the broken $27,500 level.
If this level holds and the market rises above the 200-day EMA, a rally towards $30,000 and beyond becomes very likely. However, failure to do so could lead to a potential breakdown towards the $20,000 support area.
Four-hour chart
Examining the 4-hour chart provides more clarity on the recent price action. Since breaking out of the large falling wedge pattern, the price has risen above the $27,500 resistance level.
However, it is currently retesting this level, and if the pullback is valid, the market could be poised to rise towards $30,000. Conversely, if the pullback fails, the recent move will be considered a false breakout and could lead to a rapid decline towards $25,000 or less.
On-chain analysis
The trader’s buying and selling ratio
by Idris
The futures market has played an important role in determining Bitcoin’s price movement in recent years. Therefore, for a sustainable uptrend to occur again, the futures market must be prepared.
This chart displays the 100-day moving average of Bitcoin’s buy/sell ratio, which is a valuable measure in assessing sentiment in the futures market. This measure indicates whether buyers or sellers execute more aggressive orders overall. Values above one are considered bullish, while values below 1 are considered bearish.
As shown in the chart, the buy/sell ratio has been below 1 for some time now, coinciding with the recent consolidation and inability of the price to move higher. If this measure starts to rise and exceeds 1, a bullish continuation is expected in the short term. Otherwise any upward movement is likely to be unsustainable.
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Cryptocurrency charts By TradingView.
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