Bitcoin Retests $30,000 After Gaining 9% in 24 Hours – What’s Next?

The general outlook for Bitcoin on the daily time frame remains bullish, as the price found support at the 50-day moving average after the recent correction. Despite these positive aspects, the price is currently facing significant resistance at $30,000.

daily chart

After a multi-month uptrend, Bitcoin hit the critical $30,000 resistance level and was unable to sustain above that level. However, after a short-term correction that resulted in a 14% drop, Bitcoin found support at its 50-day moving average around $27,300.

This resulted in another uptrend, providing a positive signal for the cryptocurrency’s overall outlook, suggesting that the bulls are in control. However, BTC is currently facing an important and decisive resistance in the $30,000 price zone and is trying to break through this level.

If successful, it could initiate a strong rally towards the $40,000 price channel. On the other hand, if the price fails to break through this critical level, a double top will form, possibly leading to another decline.

Source: TradingView

4 hour chart

On the 4-hour time frame, Bitcoin has formed an ascending channel that has recently dropped to a lower threshold. However, the trendline and short-term static support at $27,000 protected the price, causing the price to surge higher.

Currently, the cryptocurrency faces key resistance above the channel’s midline, which will determine its next move. If the price can break this level, it will target the $30K price zone. On the other hand, if the trendline rejects the price, a drop to the lower border and the $27,000 support is possible.

Source: TradingView

On-chain analysis

Coins that spend more than 155 days inactive usually indicate a long-term trend for Bitcoin, as is the case currently. By analyzing the long-term Hodler payout-output ratio (SOPR) using monthly averages, we were able to spot extreme payout points that coincided with bear market bottom prices.

In all previous instances in Bitcoin history where SOPR had a similarly negative value, the price never fell below that particular point. Therefore, this indicator indicates that the Bitcoin price will not fall below the value determined in November-December 2021.

It should be noted that this indicator mainly reflects the long-term cycle, and it often takes several years to reach the extreme value, and cannot capture short-term fluctuations. Therefore, while long-term investors can benefit from strategic investments, traders should consider other indicators in the interim.

Source: TradingView

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According to Cryptopotato

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