Bitcoin is now at its six-month high price. It has recently moved towards the psychological level of $30,000, which is also a Fibonacci retracement level. Let us have a look at some price analysis to see if Bitcoin might cross this price and begins its rally to break $69k, its all-time high price.
Technical Analysis
Since we are looking at larger levels over a period of six months, it would be wiser to use daily charts. Daily charts help identify trends over a few weeks. They are called so because each point in a daily chart corresponds to one day.
On daily charts, we can see that:
- RSI has been showing a greater price momentum and is stabilizing near 60, a bullish signal.
- MACD line is above the signal line, confirming the growing price momentum indicated by RSI.
- However, volumes are low despite the rise in price. This shows that a significant amount of traders are uncertain.
- Finally, a sharp price rise always meets with some consolidation.
On-Chain Analysis
There are several insights from on-chain data. Bitcoin is getting more and more democratic with greater retail adoption. Further, small investors and traders are taking a deep interest, which is clearly visible in the following data points.
Record Retail Ownership
Small-time investors who have just over 1 Bitcoin are at an all-time high now. On-chain data shows similar trends for Ethereum as well. This indicates that Bitcoin is safer from the manipulation of a few big whales. Into the block insights also show that whale concentration is just at 11%. Further, the current total number of addresses is at a six-month high of 46 million holding addresses as per CoinMarketCap.
69% HODLers are in Profit
Into the Block data shows that as much as 69% of Bitcoin wallets are in profit. Also, most of these wallets are investors who have held the cryptocurrency during the tough crypto winter, indicating a strong community.
People are Skeptical of Bitcoin Prices
The reason is simple; Bitcoin gained about 30% or more during the past five weeks. It is reasonable enough to expect a pullback. The decreasing number of perpetual contracts shows that trader participation is low even if prices are on the rise.
Target and Stop loss
Investors can buy Bitcoin if they have a view of 6 months to 1 year. Bitcoin might soon cross $30,000 due to the ongoing US banking crisis and devaluation of the US Dollar, as pointed out by ex-Coinbase CTO Srinivasan. Further, many agencies are predicting that Bitcoin might cross its all-time high before 2023 ends.
Traders are best advised to stay out of the market as strong fundamentals exist, such as the US Banking Crisis and the de-Dollarization of international markets. Such uncertainties can destroy your trading capital as moves can be instantaneous.
If prices cross $29,500, you can buy for a target of $32,100 while keeping the stop loss at $29,100.
Disclaimer: Voice of Crypto aims to deliver accurate and up-to-date information, but it will not be responsible for any missing facts or inaccurate information. Cryptocurrencies are highly volatile financial assets, so research and make your own financial decisions.
