Last updated on August 8, 2023
Bitcoin’s Price Consolidates Near Pivotal Level: BTC Price Analysis
Bitcoin’s price has been relatively stagnant for the past few weeks, struggling to break through the $30K resistance level. The current phase appears to be corrective, characterized by minor rejections, with significant support found at the 100-day moving average (MA).
On the daily chart, there is a corrective movement since the rejection at $30K, with a gradual retracement towards the 100-day MA at $28.5K. This moving average has served as strong support, preventing further declines for several months.
However, if the price drops below the 100-day MA, it may indicate that sellers are targeting the 200-day MA and the lower boundary of the multi-month channel. The 200-day MA holds significant importance as it could act as support and drive the price higher.
Nevertheless, if Bitcoin finds support at the 100 or 200-day MAs and manages to reclaim the $30K level, it may trigger a rally towards the $38K resistance zone in the coming weeks.
On the 4-hour chart, the price appears to be range-bound, oscillating between the $30K and $25K resistance and support levels. The ongoing correction stage began in early July, with the price approaching the critical 0.5 and 0.618 Fibonacci retracement levels. This region serves as crucial support and may be the target for the current correction.
A supportive reaction in this area could lead to a new bullish phase and a surge in price. However, if the cryptocurrency breaks below the range between the 0.5 and 0.618 Fibonacci levels, it may rapidly decline towards its lower threshold at around $25K.
In on-chain analysis, it is interesting to note that around 69.2% of all Bitcoin hasn’t been transferred for more than a year. This indicates that many holders firmly believe in Bitcoin’s long-term value, despite its volatility. Furthermore, about 55.7% of Bitcoin has remained untouched for over two years, demonstrating a strong “HODLing” strategy among participants.
This trend continues, with approximately 40.1% of Bitcoin remaining dormant for more than three years, showing unwavering faith in its potential. Additionally, those who have held onto their Bitcoin for over five years make up around 29.1% of the total supply, showcasing their long-term commitment.
The “HODLing” strategy significantly affects Bitcoin’s price. When a large portion of Bitcoin stays inactive, it reduces the available supply in the market. Combined with increasing demand, this scarcity can push the price higher in the long term.
Overall, Bitcoin’s price is consolidating near a pivotal level, and a significant move may be incoming. Traders and investors should continue to monitor the support and resistance levels mentioned above to gauge the future direction of the cryptocurrency.
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