the BitcoinPrice had recently hit $ 50,000 and passed a 16-day high.
If we look at the significant corrections over the past year, we can see an interesting pattern in the daily timeframe; Breaking the 20-day MA and closing a candle above it has often created an uptrend.
This pattern was repeated six times, but failed twice. The first failure was because the market was already overheating. The second failed incident was due to FUDs caused by the ban on miners in China and Elon Musk’s famous tweet that Tesla had stopped accepting Bitcoin. The 20-day MA has already broken and a candle has closed above it. So we’ll have to wait and see if this triggers a new bitcoin rally.
On the shorter time frames, Bitcoin managed to break above the dynamic descending line (highlighted in yellow in the graph below) and is currently battling the MA-200 line in the 4 hour time frame after trading below it for nearly 40 days.
Exceeding this resistance could lead to a continuation run to reach. mean the static and dynamic resistances at $ 53 – 54K. Many analysts believe that price could pull away from this area.
Most of the on-chain metrics confirm the supply shock scenario in the medium term. The only worrying point to highlight is the average size of transactions from other exchanges to the derivatives exchanges.
Lower levels on this graph mean that retailers make up the bulk of the eternal futures market. Hence, the short-term price movement is expected to be volatile.
The above analysis was done exclusively for CryptoPotato by @GrizzlyBTClover and @CryptoVizArt.
Source: Crypto News Deutsch