A crypto currency journey, which started from few dollars and ranging to whooping 61 thousand US dollars, is full of highs and lows. Bitcoin, being the parent currency coin in the world of crypto does have huge impact on the overall family of crypto coins such as Ethereum and Tether.
Since the beginning, the price of Bitcoin was not dominating the market nor was it worth noticing. But in pandemic, the price of Bitcoin skyrocketed and went above 60 thousand dollars. But from that point, the faith in crypto currency took a hit with Bitcoin coming downwards to 30 thousand USD. Since then it was being ranging in between $30k to $45k till 9th May when crypto markets crashed and Bitcoin is pricing at $30k.
For few weeks, Bitcoin volatility was above $37k level which was considered as a strong support but it was broken down when Bitcoin failed to gain momentum after 40k and leaped downwards till $31k. A long enormous liquidation cycle in this bearish leg of crypto currency.
While analyzing the daily chart, Bitcoin was on $37K range, retail traders were buying Bitcoin which resulted in dropdown to liquidity. The market is in bearish leg which further indicates that it is going below with making $30K a strong support level and it will undergo testing before the market gain momentum sideways.
While looking at RSI levels, it is interesting to observe that market is displaying oversold indication. In such indications, it is quite possible to have a temporary high in lower momentum which will further strengthen the bearish leg as per technical analysts.
Figure Source: Tradingview
4 Hour Chart
While looking at the bigger picture, it is worth noticing that such events are termed as “corrections.” Corrections are termed as necessary pullbacks. These are indication of a strong, healthy rally. Analysts observed a correction pattern known as Flag Pattern after the fall from $69K. The All Time High (ATH) was recorded on 21st November. Later on, the market price broken the trend line of the flag pattern which is mentioned above. That indication was a powerful one for technical analysts to be prepared for a rally but in the opposing direction which is not a pleasant sight for retail traders. According to analyses, the price is going to hit below the previous daily low and to close around the lowest since July-August 2021.
Figure Source: Tradingview
Miner’s Position Index
MPI is another important factor linked strongly to crypto currencies since all these currencies are mined around the globe. It is equally important to observe the accumulation of Bitcoin. MPI is calculated with a formula in which total miners’ outflows are being divided the moving average of 365 days. When the values are higher in MPI, it is a strong indication that miners are sending in more coins. It will automatically result in a massive selloff.
Figure Source: CryptoQuant
While preparing this analysis, experts had observed that since July 2021, the market accumulation was increasing. With price getting above $49K, MPI hit the local high which further indicated that the pressure from miners will be on sell rather than buy. After that, the MPI values and price of Bitcoin started to move downward and decline started. Right now, miners are selling their crypto assets at average pace which is quite predictable in the bearish leg.
What’s Cooking Now?
Price is going to test $30K levels with taking it as a support according to expectation and analysis. If broken, the price might range in between $27K to $30K. According to analysis a strong rally will be there by the end of the month as per different technical analysis and observing the investment opportunity the traders were looking for.
Disclaimer: Information which is being present on Review Vibe is as per the writers quoted. These analysis and information does not represent any sell, buy or hold investments. But conduct your own research and perform analysis before making any sort of investment in crypto currency. You can use the provided information at your own risk.