BTC Flirts With $30K But Warning Signs Start Popping: Bitcoin Price Analysis

After the successful breach above the critical $30,000 resistance level, bitcoin price is currently holding its position above this level. However, there are worrying indicators emerging that indicate a possible correction or change in trend in the near future.

Technical Analysis

by: Idris

daily chart:

After a strong bullish breach above the crucial $30,000 resistance level, bitcoin price’s bullish momentum has stalled on the daily chart.

The price is currently consolidating above this level, but caution is advised as the RSI is indicating overbought conditions, which indicates a possible decline in the short term. If it falls below $30,000, the recent breakout could be considered false, triggering a possible reversal.

In such a scenario, the 50-day moving average around $28k and the 200-day moving average near $25k are likely to act as support levels.

4 hour chart:

By examining the 4-hour time frame, it is evident that bitcoin price is currently in a consolidation phase, and is hovering tightly above the previously breached $30,000 resistance level.

This consolidation follows a rapid and sharp ascent after exiting an important downtrend channel. Although the RSI is hovering near the midpoint of 50% in this time frame, there is a notable chance of a short-term bounce, especially if the $30,000 level is unable to sustain the price.

On-chain analysis

by: Idris

Bitcoin miners attitude indicator

Analyzing the behavior of bitcoin miners can provide valuable insights, especially after the recent price rally above the important $30,000 resistance level. Miners play an important role in the Bitcoin network, and their actions can greatly affect the market.

The measure of the Miners’ Position Index (MPI) is illustrated in the graph, and is the ratio of miners’ total outflow (in USD) to the one-year moving average. A higher value indicates that miners are sending more coins than usual, which indicates potential selling activity. If miners collectively sell part of their reserves, it could lead to a pullback.

The chart clearly shows a significant increase in MPI during the recent bullish move of BTC price above $30K.

This can be interpreted as miners selling off some of their holdings to ensure they can cover their operating expenses, especially if there is a market downturn in the future. However, if this selling behavior continues, it could lead to an increase in the supply of Bitcoin and possibly lead to a major crash in the price. Investors should be careful and monitor this situation closely.