These two key levels will determine BTC's medium-term trajectory: Bitcoin price analysis

After an extended sideways consolidation phase, Bitcoin fell into a downtrend and touched a key support zone around $60,000. However, there are expectations that buying pressure will increase again, which could lead to a rebound.

technical analysis

Written by Shayan

daily chart

A comprehensive review of the daily chart reveals a long-term sideways consolidation within the key price range of $60,000 to $72,000, with recent price movements pointing to a decline towards the lower end of this range. I understand.

Bitcoin currently sits in a key support zone spanning the Fibonacci retracement levels of 0.5 ($62,181) to 0.618 ($59,444) and the key 100-day moving average of $59,000. is consistent with

This support area is very important and could trigger a bullish reversal in the short term. However, a sudden and unexpected breakout of this critical level could trigger a long squeeze event, leading to a noticeable decline.

4 hour chart

An analysis of the 4-hour chart reveals that selling pressure has increased after Bitcoin failed to regain the upper bound of its descending wedge. This created a noticeable downtrend towards the lower trendline of the wedge, which hovered around $60,000.

Once this critical level was reached, selling pressure was met with sufficient demand, leading to a small consolidation phase. However, sellers are still keen to break through the lower bound of the wedge.

If buyers regain control and price finds support near this important level, a bullish rebound toward the previous big swing high of $68,000 could develop. Nevertheless, the $60,000 mark is currently a major reference point for Bitcoin, and price movements around it are likely to determine the cryptocurrency's near-term trajectory.

On-chain analysis

Written by Shayan

Bitcoin continues its extended decline, with the price approaching the $60,000 threshold. Given this scenario, a closer look at the sentiment analysis within the futures market can provide valuable insight into its potential trajectory.

The chart provided gives a glimpse of the financing rate, which is a vital indicator of the dominance of buyers or sellers in driving market dynamics. Upon closer inspection, the recent corrective retracement has brought funding rates down significantly, approaching near-zero levels.

This economic downturn represents a positive development in the long term, as it reduces the pressure for further liquidations and lays the groundwork for the resurgence of both long and short positions in the permanent market. As a result, the market appears poised to embark on an impulsive trend once again, bringing an end to the prevailing phase of uncertainty and sideways consolidation.