• The price of Bitcoin is currently on a downward trajectory since it faced resistance at $30K in April.
• Technical analysis shows that the 50-day moving average acted as a strong resistance, causing a downward rejection near the $28K level.
• On-chain analysis by Shaya suggests that there are support levels that may prevent further decline.
Bitcoin Price Analysis
The price of Bitcoin has been declining since it reached a resistance level of $30K in April. Technical analysis shows that the 50-day moving average has been acting as a strong resistance and has caused a downward rejection near the $28K mark. On-chain analysis by Shaya has indicated potential support levels which may help to prevent further decline.
Daily Chart Analysis
On the daily chart, we can see that Bitcoin has been forming lower highs and lows for several months now. The 50-day moving average provided significant resistance, resulting in a drop near the $28K area. Following an upward spike yesterday, the BTC price is once again testing this resistance level; if there is another rejection then it could result in further declines towards to key 200-day moving average located around $24K.
4 Hour Chart Analysis
The 4-hour chart paints a clearer picture; we can see that there was major resistance at the $27,500 area which caused prices to drop sharply afterwards. However, following an overbought signal from RSI, there was some reversal momentum which allowed for retesting of this same area; If this time around it breaks through then it could open up possibilities for further rises towards $30K once again.
On Chain Analysis
Shaya’s on chain analysis suggests potential support levels which may be able to help stem any further drops in Bitcoin’s price action over time. This includes possible retests of both the 50-day and 200-day moving averages if necessary; these areas should provide some stability for BTC until more favourable conditions return to the market place once again.
Overall, technical and on chain analysis both suggest similar scenarios when it comes to predicting where bitcoin will go next – mainly being dependent upon whether or not certain barriers such as those mentioned above can be broken through or not in order to move higher up towards $30K again soon enough. In either case though, these support levels should give traders some comfort knowing that they have something to fall back on if need be during this period of uncertainty surrounding cryptocurrencies overall right now