Bitcoin price has failed to recover significantly since its fall from $68,000. However, there may still be hope for investors as there are several support levels available.
Technical analysis
Author TradingRage
Daily chart
On the daily chart, the price is consolidating below the 200-day moving average located near the $63k mark. The market also retested the moving average after breaking below it a couple of weeks ago but was rejected lower.
Since then, the price has failed to hold above the $60K level and is currently approaching the $57K support level. If this level is broken, a fall to $52K will be inevitable. On the other hand, as long as the market is trading below the 200-day moving average, a sustainable rally is not expected.
4 hour chart
The 4-hour chart shows a much clearer picture of the recent price action. Since the market bounced off the $50K area, the price has been consolidating between the $60K and $57K levels.
Meanwhile, the bullish momentum appears to be fading as the RSI has once again fallen below the 50% level, with a break of the $57K support zone and a decline towards the $52K area likely.
Supply chain analysis
Author TradingRage
Bitcoin Coinbase Premium Gap
While Bitcoin price is consolidating over the long term, it may be useful to look for the underlying reasons for this halt in the bull run. This chart shows the Coinbase Premium Gap, which measures the difference between Binance’s BTC/USDT pair and Coinbase’s BTC/USDT pair. This metric is commonly used to analyze the behavior of U.S. investors, as they primarily use Coinbase.
As the chart shows, the Coinbase Premium Gap has been negative in aggregate over the past few months as US investors appear to have been putting pressure on the market by selling.
This behavior is also seen in the US stock markets as Americans are bearish on risk assets. As a result, a potential recovery in the Coinbase Premium Gap could be a signal for the market to continue its bullish move. However, it may take longer.
