Bitcoin’s price has been struggling to regain its upward momentum after a sharp drop from the $75K level. Despite this, there are signs that a new bullish wave could be on the horizon.
On the daily chart, BTC has been moving within a descending channel, forming lower highs and lows. While this may indicate a bearish trend to some, the momentum is not overwhelmingly bearish. The $60K support level has managed to hold the price on several occasions, suggesting that buyers are still active in the market. The market appears to be aiming for a breakout above the channel’s upper boundary. Such a move could signal the start of a new bullish trend. Conversely, a drop below the channel could trigger a quick decline towards the $52K support level.
The 4-hour chart confirms the analysis seen on the daily timeframe. The price has bounced off the $60K support zone and is now testing a short-term resistance level around $63,500. The Relative Strength Index (RSI) has climbed above the 50% mark, indicating a return of bullish momentum. If the price breaks above $63,500, we could see a rally towards the midline of the channel, potentially setting the stage for new all-time highs.
While Bitcoin’s price has been in a corrective phase for the past few months, there is no single cause for the decline. However, a closer look at the US market reveals some interesting dynamics. The Coinbase premium gap, which measures the price difference between Coinbase’s BTC/USD pair and the BTC/USDT pair on Binance, provides valuable insights into the demand and supply balance in the US market compared to other regions. The premium gap has been highly volatile recently, particularly on the downside, indicating low values. This selling pressure from US investors, particularly wealthy individuals and institutions, has been a contributing factor to the recent price drop. As long as this trend persists, the outlook for a bullish continuation remains uncertain.
While Bitcoin’s price has faced challenges in maintaining its upward momentum, there are indications that a new bullish wave could emerge. Traders should monitor key support and resistance levels for potential breakout opportunities and be cautious of external market factors influencing price movements.
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