Home Cryptocurrency Bitcoin price moves toward $40K as on-chain and technical analysis favor bulls

Bitcoin price moves toward $40K as on-chain and technical analysis favor bulls

by Serge Shlykov

Bitcoin price moved above its 50-day moving average this week, and has extended its gains in recent days. As a result, the price of Bitcoin is expected to continue higher in the coming weeks, as a result of positive technical factors including strong volume and on-chain support.

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Bitcoin’s dominance of the cryptocurrency market has been usurped by the rising price of Ethereum, but not for long. Bitcoin has been able to hit a new high and look like it might attempt a break-out to $40,000, while Ethereum has been trying to break out above the $300 mark and rally the price of its tokens.

“Bitcoin price moves toward $40K as on-chain and technical analysis favor bulls”. Read more about investing in cryptocurrency 2021 reddit and let us know what you think.

On the 13th. In June, the price of bitcoin (BTC) made a bullish turn by passing the $39,252 mark, but many analysts are still questioning whether the digital asset is ready to continue its upward trend. As of today, the crypto-currency market remains tense and is two months away from bitcoin’s all-time high, which was close to $65,000. Delphi Digital’s market analysis showed a great head and shoulders pattern that could bring more pain in the near term if BTC drops below $30,000. With that in mind, it’s now time to look at some key data points to get a better idea of where the bitcoin price could be headed.

Holders of short-term securities incur losses

A 50% drop in price in the past two months may seem extreme to those unfamiliar with the volatility of the crypto currency market, but it’s no surprise to long-term players who have seen many draws of even greater magnitude over the past decade. Bitcoin price drops from 52-week high. Source: Delphi Digital As you can see from the chart above, a drawdown of 70% or more is not uncommon for BTC, especially after a big price jump, suggesting the possibility of additional pain as the bulls fight the bears in the $30,000 range. The rapid price drop has sent new and old bitcoin owners fleeing, causing traders to sell at a loss, according to Spent Output Profit Ratio (SOPR) data cited by cryptocurrency analyst filbfilb. Exit Profit ratio of bitcoins issued. Source: Decentrader Bitcoin price moves toward $40K as on-chain and technical analysis favor bulls There have been signs of a rebound in the SOPR in recent days, suggesting that mid-sized portfolios are selling at a profit again. The Cryptocurrency Fear and Greed Index (CFGI) also reached its lowest level since the March 2020 sell-off triggered by the Covid 19 pandemic. A decline ofBTC against the crypto-currency fear and greed index. Source: Delphi Digital Bitcoin price moves toward $40K as on-chain and technical analysis favor bulls The great fear that most traders are currently experiencing is causing many to stay away, as the fear of further losses remains a legitimate possibility. However, for contrarian investors, poor index performance is a signal to be greedy when others are fearful, as Warren Buffett would say, and the chart above shows that buying in periods of great fear is usually a good entry level. Related: The cross of bitcoin’s impending death could be a counter-buy signal.

Mood begins to recover

While it is true that the price of bitcoin has fallen by more than $30,000 in the past two months, it is important to note that the amount of the drop and the current price is almost twice the previous all-time high in 2017, showing how great the recovery has been in the past six months. Decentrader’s chain analysis shows that the oversold signal was triggered recently, suggesting that BTC could be ready for a reversal and an upward move soon. Bull signal from the active address setting display. Source: Decentrader Bitcoin price moves toward $40K as on-chain and technical analysis favor bulls The Active Addresses Parameters indicator compares the 28-day price change, shown by the orange line, to the 28-day change in the active addresses in the chain, shown by the gray line bar. An orange line crossing the green dotted line with the active change of address band is considered a bullish signal, and the last time this happened was on June 10, indicating a possible turnaround in the market. According to Rekt Capital, a popular analyst on Twitter, bitcoin is still on its way to a new all-time high. The #BTC shares (blue) occur in the year before the new candle 1. And candlestick 1 is where the $BTC is experiencing its most explosive growth. Whatever the FUD is now against BTC, it won’t change the long-term effect that halving the price of BTC has on the price of bitcoinhttp://t.co/1NTrPs8wfW pic.twitter.com/F7C9P6ehMO – Rektcapital (@rektcapital) 13. June 2021 Right now, it might be best to take a break and not worry about where bitcoin is going. The long-term outlook remains strong as countries like El Salvador have started using BTC as a legal currency and more and more people are becoming interested in cryptocurrencies. The views and opinions expressed herein are those of the author and do not necessarily reflect those of Cointelegraph.com. Every investment and every transaction involves risk. You should do your own research before making a decision.Bitcoin price moved from $5000 to $6000 in a single day yesterday, which really caught the attention of the crypto community. Bitcoin price currently sits at $6500, and it’s still under a bearish trend. The market is in a downtrend, which could last for the next few months.. Read more about ethereum in 5 years reddit and let us know what you think.

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