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Was $30,000 a local bottom or is another bloodbath to come?

                                                            Bitcoin befand sich in den letzten Tagen im freien Fall und hat sechs aufeinanderfolgende rote Wochen abgeschlossen.  Der Preis war kürzlich unter das Niveau von 37.000 $ gefallen, was in den vergangenen Monaten mehrfach solide Unterstützung geboten hatte.

This price drop was initiated after BTC rejected trying to break the 50-day and 100-day moving average lines, causing a massive long liquidation cascade and a crash into the $30,000 demand zone.

This is what awaits you in this article

Technical Analysis

Technical Analysis by Edris

The daily chart

Currently, the price appears to be finding temporary support as bulls start buying Bitcoin at the same prices as last year’s lows starting mid-year.

The $30,000 is a significant demand zone and if it holds, the price could rally towards the $37-40,000 supply zone in the short term. The RSI also reached the oversold territory, which could indicate a near-term recovery.

On the other hand, if the bearish momentum persists and the price breaks below the current range, a rapid drop to the $21,000-$24,000 levels could occur. Furthermore, a bearish transition between the 50-day and 100-day moving averages seems imminent, suggesting a continuation of the downtrend.

Was $30,000 a local bottom or is another bloodbath to come?, Crypto Trading News

The 4 hour chart

On the 4-hour timeframe, the price failed to continue the bullish momentum after breaking out of the falling wedge shown in the chart below. This fake breakout and rejection at the $40,000 zone intensified selling pressures, which caused the price to drop below the marked bearish flag that has been forming over the past few months, giving the signal to continue the downtrend and a eventual crash towards $30,000.

However, the price of BTC has printed two bullish candles during this period after testing the $30,000 demand zone and the RSI indicator appears to be exiting the oversold territory (below 30%).

These signals could point to a potential rally towards the $37,000 resistance level in the near term. However, the current bearish momentum seems too strong, hence a break below $30,000 remains the most likely outcome in the short-term as the bears completely control the market.

Was $30,000 a local bottom or is another bloodbath to come?, Crypto Trading News

onchain analysis

Onchain analysis by Shayan

Bitcoin was shaken badly and fell below $30,000. The chart shows that the exchanges’ netflow indicators have surged to multi-month highs, which has resulted in a dramatic price decline.

In July 2021, the same scenario happened when bitcoin fell to $30,000 and then after a last capitulation candle started a new bullish move that led to a new high in November. Compared to July, the market seems to be in the final stages of capitulation, after which a new uptrend could develop in the medium (months) term.

Source: Crypto News Deutsch

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