BTC drops below $64,000 but still within the consolidation range

Bitcoin price has been consolidating over the past two weeks following a recovery from the $56,000 support level. This behavior has investors wondering if a new near-term record high will be seen.

Technical Analysis

By TradingRage

The daily chart

In the daily period, the price has been moving between the levels of $64,000 and $68,000. The market has failed to break the $68,000 resistance twice and is retesting the $64,000 support zone.

If the support level is broken, the 200-day moving average, located around $61,000, would be the next target for bears. Still, as long as BTC trades above the 200-day moving average, the trend can be considered bullish.

Source: TradingView The 4-hour chart

Looking at the 4-hour chart, the price is showing a gradual decline in a downward wedge pattern. The cryptocurrency has found support at $64,000 and the lower limit of the pattern.

If the market can break the falling wedge to the upside, BTC could rally back towards the $68,000 resistance level. Meanwhile, a break of the $64,000 support is also possible, with the RSI showing bearish momentum.

Source: TradingView On-Chain Analysis

By TradingRage

Bitcoin Exchange Netflow

Although the price of Bitcoin does not continue its upward trend, analyzing the behavior of market participants would be beneficial. This chart presents the Bitcoin Exchange Netflow and its 30-day standard moving average. Positive values ​​indicate deposits and negative values ​​indicate withdrawals from the exchanges as a whole.

As the chart shows, the BTC Exchange Netflows metric has seen two big negative days recently.

This indicates that investors are using the current withdrawal to add more BTC to their wallets. The 30-day moving average of net foreign exchange flows has also been opposite over the past few months, pointing to aggregate accumulation over this period. This behavior may lead to a supply shock in the coming months, which could lead to a major rally.

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