Bitcoin Price Stays Low Volatile at $30K Zone, Buy or Deny?

Bitcoin Price Stays Low Volatile at $30K Zone, Buy or Deny?

Following a noteworthy surge of 5000 points in Bitcoin, the cryptocurrency market is presently encountering profit booking, resulting in a decline in volatility. Despite Bitcoin's proximity to resistance levels, the market appears relatively steady as a result of an influx of sellers in the market.

As of the present moment, the price of Bitcoin in relation to the US Dollar is hovering approximately 100 points above the crucial $30,000 threshold. Consequently, traders are currently in a state of anticipation, seeking a definitive signal either in an upward or downward direction, as the price of BTC has pulled back from its significant resistance level.

Source: Tradingview

On the daily price chart, Over the past week, Bitcoin's price has surged upward, bouncing back strongly from the $25K support level. It has even surpassed the $30K resistance. On the other side, the yearly highest peak of $31,479 appears to be the immediate hedge zone of bulls. 

Although there's a chance of a correction indicated by the supply zone, the 50-day moving average could provide support at around $27,500, with the 200-day moving average acting as another support near the $25K range.

On-Chain Analysis

Source: CryptoQuant

Following Bitcoin's recent rally, many long-term holders, who had been enduring losses for several months, are now able to sell their holdings and make profits.

The chart displays the Long-term holder SOPR metric, which represents the ratio of profits or losses realized by long-term holders. Values above 1 indicate profit-taking, while values below 1 indicate losses.

The chart clearly illustrates that long-term holders, who had experienced losses for nearly a year, have started selling their holdings at a profit due to the recent surge in price. While this situation is not necessarily detrimental, it could increase the Bitcoin supply. If demand doesn't match the increased supply, it could potentially result in a subsequent price decline.

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This information is for educational purposes only and does not constitute investment advice. No person should rely on it to make any investment. Investing carries risks, including the loss of capital. All opinions expressed are subject to change without notice. Past performance is not indicative of future results. Always seek the advice of a licensed investment professional before making any investment.