• Bitcoin is consolidating between the 50-day moving average at $28,310 and the $30K resistance region.
• A breakout beyond the $30K region will significantly impact market sentiment, as it is a crucial psychological resistance.
• Conversely, a decline below the 50-day moving average may result in volatility and consolidation in lower price ranges.
Bitcoin Consolidates Below $29K
Bitcoin’s price has been consolidating between the 50-day moving average at $28,310 and the $30K resistance region. This range is expected to break out soon, determining its upcoming rally’s direction.
Daily Chart Analysis
After finding support at the 50-day moving average of roughly $27K, the price started a steady uptrend towards surpassing the $30K region for the second time. However, Bitcoin failed to surpass this crucial resistance zone, resulting in a slight decline. The BTC price is currently consolidating within this tight range of values.
4 Hour Chart Analysis
Monitoring Bitcoin’s 4-hour timeframe reveals that it has been stuck inside a static range between $30K and $27K for some time now. Recently, BTC experienced high volatility with large red and green candles without showing any clear sign of market bias. Ultimately, Bitcoin’s price is likely to break out of this range in the upcoming weeks with its direction depending on which way it breaks out of it.
Impact Of Breakout On Market Sentiment
A breakout beyond the key psychological level of $30k would have an impact on overall market sentiment while falling below the 50-day moving average could lead to volatility and consolidation in lower levels of prices.
Conclusion
In conclusion, after failing to cross over above$ 30k twice so far; Bitcoin remains stuck within a tight range between its 50 day SMA ($ 28k) and its psychological barrier at$ 30k which must be broken for further bullish momentum to take place; otherwise prices might fall back down into their previous levels if they fail to rise above$ 30k again.