Bitcoin is stuck between $30,000 and $31,500

There has not been much going on in the cryptocurrency market, with Bitcoin being stuck between $30,000 and $31,500 for nearly a month now. During this time, the volume decreased, and indicators like RSI and MACD started to show signs of weakness on the daily chart. In addition to that, Bitcoin began to lag with gains behind the tech sector, which was previously exhibiting a high positive correlation with it. So, with the current choppiness in the price, we continue to wait for a breakout from the range. If Bitcoin breaks to the upside, it will be bullish for the short-term. Contrarily, if Bitcoin breaks below $30,000, it will be bearish.

Illustration 1.01

Illustration 1.01 shows the bearish setup.

Technical analysis gauge
Daily time frame = Slightly bullish (with signs of exhaustion)
Weekly time frame = Bullish
*The gauge does not necessarily indicate where the market will head. Instead, it reflects the constellation of RSI, MACD, Stochastic, DM+-, ADX, and moving averages.

Please feel free to express your ideas and thoughts in the comment section.

DISCLAIMER: This analysis is not intended to encourage any buying or selling of any particular securities. Furthermore, it should not be a basis for taking any trade action by an individual investor. Therefore, your own due diligence is highly advised before entering a trade.

Comment:

Yesterday, when Bitcoin made a new high, we saw a large drop in the number of BTC addresses with balances holding 100 or more tokens. Considering that we saw the same development in April 2023, just before the short-term trend reversed, we are growing increasingly cautious over the impending spike in volatility and trend reversal.