Bitcoin is finally showing signs of strength, rising a significant 9%. This follows a consolidation phase. The $18K level supported the price again, proving its sentimental strength.
The daily chart
The $18K-$19K support appears to be the most crucial level for the bulls to hold. If they fail to do so, the market could fall towards $15K.
Bitcoin price has been supported for the fourth time and is now targeting the 50-day MA at $21.9K. The 50-day moving average line is about to cross the 100-day moving average line, which can be identified as a bullish signal.
If the cryptocurrency successfully breaches the 50-day and 100-day MA lines, a medium-term bullish phase will become more likely. Also, these lines are currently acting as critical resistance levels.
The 4-hour chart
The $18K level has again shown its sentimental strength. The price has increased by about 9% after testing for the fourth time. As a result, BTC broke the multi-week bearish trendline and continued to climb.
The Fibonacci retracement indicator for the recent bearish expansion move shows the retracement’s 61.8% level aligning with the $22.5K resistance. The price must surpass the above levels for the bullish rally to continue.
Coinbase Premium Index
Coinbase is the most popular crypto exchange in the United States and has the largest trading volume in the country. It is the only listed crypto exchange in the world. This is a key feature that attracts US institutions and wealthy investors who want to put their money into the industry.
The chart below shows the Coinbase Premium Index – the Bitcoin price gap percentage between Coinbase Pro and Binance. Values above 0 are interpreted as significant buying pressure in Coinbase and values below 0 indicate higher selling pressure.
This stat has quickly slipped into negative territory as the price broke below the $30K level a few months ago. This led to huge selling pressure from US investors and institutions after nearly 2 years of constant accumulation.
However, US institutions and investors have started to accumulate again at the $20K level. This behavior could be a sign that the bear market is nearing the bottom, as it shows that Coinbase’s supply has dried up and demand is returning to the market.
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Cryptocurrency Charts by TradingView.