BTC Unable To Escape The $28k Range, Is A Correction Possible? (Bitcoin price analysis)

Bitcoin’s recent bull run has stalled, and the price has entered a phase of steady consolidation with no clear direction. The cryptocurrency is currently in a critical area, and in order to pass the big hurdle of the $30,000 resistance level, there must be an increase in demand and purchasing power.

Technical Analysis

by Cheyenne

daily chart

Bitcoin recently reached a critical area of ​​$30,000, which proved to be a significant resistance level.. This level halted the recent impulsive rally of Bitcoin and led to a period of flat PA with low volatility.

If the BTC bulls push the price above this crucial area, it is likely to lead to a long-term bullish trend.

However, the divergence between the price and the RSI indicates that a short-term correction is likely to occur soon. In this case, the $25k area, which corresponds to the 50-day moving average, will become the primary support level for Bitcoin.

Source: TradingView

4 hour chart

Bitcoin has formed an ascending trend line on the 4-hour time frame, which has been in effect for several months and is currently acting as support for the price. However, the cryptocurrency was trapped between an ascending trend line and the $30,000 price area. A significant move above or below this crucial range is likely to eliminate any uncertainty and determine the medium-term price outlook.

To sum up the recent moves, it appears that a short-term rejection followed by a potential Bitcoin consolidation correction phase in the coming days.

Source: TradingView

On-chain analysis

by Cheyenne

Bitcoin difficulty is adjusted based on the behavior of miners and the latest movements in the hash rate. The difficulty level resets depending on how many miners are currently using their machines to mine. When there are more active miners, adjusting the difficulty makes it more difficult for them to mine a block, which helps ensure that the block production rate remains relatively constant.

According to data from CryptoQuant, the latest tweak has resulted in a spike in the difficulty gauge, leading to a new all-time high. This indicates that more miners are willing to mine bitcoins and keep their machines running, making the network more secure. Overall, this is a bullish sign for the cryptocurrency.

Source: TradingView
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Cryptocurrency charts by TradingView.

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