Bitcoin’s Consolidation Nearing End As Major Move Looks Imminent

Bitcoin’s price rally has stalled over the past two months as the market consolidates. However, things are about to change soon, for better or worse.

Technical Analysis

By TradingRage

The daily chart

On the daily chart, it is clear that the price of Bitcoin has been consolidating within a large descending channel. The average line of the channel has recently rejected the price to the downside and the market is retesting the $60,000 level.

If this level is broken, there is a high probability that the channel will also be broken, and the price is more likely to experience a massive drop towards the $52,000 support area.

Source: TradingView The 4-hour chart

Looking at the 4-hour chart, things look a lot clearer. The price has recently tested the middle line of the channel but has been decisively rejected. However, today’s action gives us the most significant clue as the price has been moving down aggressively.

The RSI is also showing values ​​below 50% as the momentum is in favor of the sellers. Hence, things can get ugly if the $60,000 level is broken to the downside.

Source: TradingView On-Chain Analysis

By TradingRage

Bitcoin Exchange Reserve

As the price of Bitcoin struggles to continue its uptrend and record a new high, the bears have been taking advantage and now appear to be starring in another decline.

This chart shows the currency reserve metric and its standard 30-day moving average. Bullish values ​​are usually considered bearish as they mean that investors are depositing their coins on exchanges to sell them.

As the chart shows, the currency reserve metric has been rising and has risen above its 30-day moving average. This spot market supply is one of the factors that have contributed to the recent correction.

Source: CryptoQuant

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