This Is Bitcoin’s First Line of Support if the Bears Prevail (BTC Price Analysis)

Bitcoin’s price has been consolidating below the $28K level over the last few days, failing to continue its momentum toward the $30K resistance level. The price is currently testing a key area and should be closely monitored.

Technical Analysis

By Edris

The Daily Chart

The BTC price has been trapped between the 50-day and 200-day moving averages on the daily chart, with the former located around the $27K mark and the latter near the $28K level.

It is currently retesting the $27,500 support level, and a breakdown could lead to a further drop to the 50-day moving average in the short term. On the other hand, a bullish rebound and a break above the 200-day moving average could finally pave the way for the market to target the critical $30K resistance zone once again.

The 4-Hour Chart

Looking at the 4-hour timeframe, the $27,500 support level appears to be on the verge of a breakdown. The RSI indicator is also showing values below 50%, suggesting that the momentum is now in favor of the sellers in this timeframe.

In case a bearish breakout occurs, the $26K area would be the first likely target, followed by the $25K zone, which can be considered as the buyers’ last resort. Therefore, things are not looking good for BTC at the moment, and there could be a crash on the horizon.

Onchain Analysis

By Shayan

Bitcoin’s recent attempt to surge to higher prices faced a significant obstacle and was rejected. Interestingly, there has been a notable shift in sentiment among US investors and traders, as indicated by the Bitcoin Coinbase premium index. This metric measures the percentage difference between the Coinbase Pro price and the Binance price. Positive premium values indicate stronger buying pressure among US investors on Coinbase, while negative values indicate selling pressure.

The chart illustrates that this metric had been trending upward along with Bitcoin’s recent surge, indicating increased buying activity among American investors. However, the rapid decline in this metric suggests that US investors played a significant role in the recent market downturn. If this trend continues and the metric drops below 0, it could signal further declines in the market in the coming weeks.

This shift in sentiment among US investors is a crucial indicator, emphasizing the need for market participants to closely monitor this metric as it could provide valuable insights into the market’s future direction.

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