Is Bitcoin About to Lose a Key Support Area, and Is $37K on the Way? (Analysis of the Bitcoin Price)

 Is Bitcoin About to Lose a Key Support Area, and Is $37K on the Way? (Analysis of the Bitcoin Price)

The bullish crossover of the 50-day and 100-day moving average lines occurred last week, but Bitcoin failed to maintain its bullish momentum and underwent a market shakeout.

Later in the week, the price rallied and attempted to break above the moving average lines again, but was swiftly rejected and fell below $40,000.

The next significant support level for BTC is $36K-$37K; if this level fails to hold, the price will most certainly drop to the $30K demand zone.

Furthermore, the RSI indicator is currently below 50 points, as well as the long-term resistance trendline, indicating that the bears have retaken control of the market.

To achieve higher values, Bitcoin's RSI must break through the declining trendline.

The bullish side's 50-day and 100-day moving average lines are the next key resistance levels.

• The Chart for 4 Hours

In the lower timeframes, the $42K support has turned into a significant resistance level when the price failed to break above it. At $42K, selling pressure became apparent, resulting in a sharp decline to the $39K zone, which is presently being challenged.

Based on current market conditions, the bears are likely to succeed in bringing the price below $39K, but the channel's bottom trendline and mid-term support level around $37K will be a significant barrier for Bitcoin. If the above conditions are met,

If the price does not stay above this level, a decline to lower demand zones is likely.

• Analysis of the Onchain

1. Analysis of the Onchain Shayan's contribution

The long-term holding SOPR, ROC, and the Bitcoin price are shown in this graph. To establish the profit ratio of all market players, the Spent Output Profit Ratio (SOPR) compares the value of outputs at the spent time to created time. You can calculate if the wasted transaction output distribution is profitable or not.

The long-term Holders' SOPR rate of change (ROC) reflects whether these entities are in the accumulation or distribution stages.

The market is presently in an accumulating phase for investors who are less susceptible to short-term noise when the risk/return rate tends to be positive.