Bitcoin (BTC) To Tap Into $30,000 Region Before A Slow Down, Here’s Why
March 31 2023 - 4:00PM
NEWSBTC
Bitcoin is experiencing a non-stop rally while trading sentiment
moves from fear to greed with each new level conquered. While many
are still waiting for a price drop to jump into the action, others
have rushed into the market fueling the current price action.
Over the past week, Bitcoin has been moving sideways. As of
Thursday, the asset experienced a spike to trade above $29,000
before eventually slipping below $28,000 as a retracement.
Meanwhile, at the time of writing, the asset seems to be gearing
for a rally up by 0.4%. Related Reading: Bitcoin Price Shows Signs
of Weakness But Key Uptrend Support Intact Bitcoin To Tap $30,000
Region Before Slowdown Bitcoin seems poised to eventually tap into
the $30,000 region and beyond sooner or later. However, it is worth
noting that this specific price mark could be where Bitcoin starts
slowing down from its prolonged rally. The asset’s price
shows two major highs. One can be found around the $30,000 region,
while the other is just above the $40,000 region. In the
daily timeframe, the asset is looking to tap into the liquidity of
the major high at the $30,000 zone as it is closer to that level.
Should Bitcoin eventually tap into that zone, we could see a major
slowdown in the rally before resuming the bullish momentum.
This is because on every price chart, the liquidity of a major high
as being taken there is always either a significant retracement or
a prolonged range. This dynamic hints at accumulation from
investors before a push that results in a bullish move or an
expansion to the upside. In addition, major highs also provide a
take-profit opportunity for larger investors who might not be in it
long-term. This means several large investors would have put a set
take profit on their long position for Bitcoin, which will be
triggered if Bitcoin should ever tap into the $30,000 zone.
In that sense, Bitcoin could trend sideways or plummet into
previous support if large investors decide to take profits on their
positions. Related Reading: Bitcoin Investors Remain Greedy Despite
Low Momentum, Why? BTC Price Action Following BTC’s rebound
amid the US banking crisis, it has continuously risen in the past 7
days. The asset has moved from $28,000 as of March 24 to trade at
$24,463 at the time of writing after a price spike above $29,000
yesterday. Bitcoin currently has a 24-hour trading volume of $21.7
billion, with a market capitalization of $549 billion.
Interestingly, the asset’s market cap hasn’t moved much over the
past 7 days. Its market cap was still valued at $542 billion last
week Friday. Featured image from Shutterstock, Chart from
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