A massive Bitcoin rally is only possible if this level falls: BTC Price Analysis

The price of Bitcoin has not recovered significantly after falling from the $68,000 level. However, investors can still have hope as there are several levels of support available.

Technical Analysis

By TradingRage

The daily chart

On the daily chart, the price has consolidated below the 200-day moving average, located around $63,000. The market has also retested the moving average after breaking below it a couple of weeks ago, but has been rejected to the downside.

Since then, the price has not stayed above the $60,000 level and is currently nearing the $57,000 support level. If this level is broken, a drop towards the $52,000 level would be imminent. On the other hand, as long as the market trades below the 200-day moving average, no sustainable rally could be expected.

Source: TradingView The 4-hour chart

The 4-hour chart shows a much clearer picture of recent price action. Since the market rally in the $50,000 area, the price has been consolidating between the $60,000 and $57,000 levels.

Meanwhile, the bullish momentum seems to be fading as the RSI has fallen back below the 50% level. In this case, a breakdown of the $57,000 support area and a decline towards the $52,000 area could be likely.

Source: TradingView On-Chain Analysis

By TradingRage

Bitcoin Coinbase Premium Gap

Although the price of Bitcoin has been consolidating over the long term, it might be insightful to look for the underlying reasons for this halt in the bullish movement. This chart presents the Coinbase Premium Gap, which measures the difference between the Binance BTC/USDT pair and the Coinbase BTC/USDT pair. This metric is typically used to analyze the behavior of American investors, as they primarily use Coinbase.

As the chart suggests, the Coinbase Premium Gap has been negative overall over the past few months as US investors seem to have been putting selling pressure on the market.

This behavior is also seen in US stock markets as Americans have been bearish on risk assets. As a result, a possible recovery of the Coinbase Premium Gap may be a signal for the market to continue its upward movement. However, it may still take longer.

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