Bitcoin

<p>Bitcoin has been hovering around the $30,000 level for the past six weeks, which has proven to be a difficult area of resistance to break through. This is largely due to it marking the lows of the June 2021 crash. Despite this, Bitcoin has managed to reclaim its 1 year moving average, historically signifying the start of a new bull run. It has also reclaimed its 200 week moving average, which is an important indicator for positive market sentiment and the start of a new bull run.</p><p>If Bitcoin manages to break through the $30,000 resistance level, there is a lot of liquidity between $31,000 – $35,000, which suggests that price could move quickly through that zone. However, it is also worth remembering that whales can use such liquidity to get filled with minimal slippage, so there is also a risk of large asks getting filled around that area. To the downside, there is no significant long liquidity until we drop below $26,000, which interestingly is where the 200WMA is currently sitting.</p><h2 id="header-0"><strong>Bitcoin Struggles with Resistance at $30k</strong></h2><p>If Bitcoin can break through the current resistance level and run through the liquidity mentioned above, there is major resistance at $37,000, which marks the point of breakdown market panic from May 2022. When price eventually gets back to that level, it would not be surprising to see some profit taking as underwater traders/investors look to get out around their break-even points. To the downside, the 200WMA ($26,000) is now trending above Moonraker support at $25,4800, which would likely prove to be some kind of initial support should the price of Bitcoin drop down to that area.</p><h2 id="header-1"><strong>The Role of Long-Term Holders in the Market</strong></h2><p>Bitcoin may need to spend some time in this range for the coming months, in part due to the market structure mentioned above, but also due to the fundamentals of where we are in Bitcoin’s market cycle. At this stage of the cycle, it is common to see some older coins moving on-chain as long-term holders, who can act as a proxy for ‘smart money,’ start to move their coins. The psychology around this is that they have weathered the storm of the bear market lows and now want to take some funds out of the market following the initial price recovery. When that happens, the Value Days Destroyed (VDD) indicator increases. Those increases are shown by the orange spikes on the chart, following a period of green which represents relatively fewer older coins moving on-chain during the bear market lows.</p><p>This indicates that some profit taking is happening with older coins as we move out of the bear market. In prior cycles, as this process unfolds over the course of a few months, Bitcoin price remains range-bound. Increased demand is met with this supply from market participants who have held during the bear market. It is possible we will need to see something similar play out again over the next few months.</p><p>Bitcoin’s current market structure suggests that it may need more time to broadly range before any potential aggressive moves towards previous all-time-highs are attempted. Though with strong support levels down towards $20,000, it is likely that pullbacks will be relatively limited and 2022 Q4’s lows will hold.</p><h2 id="header-2"><strong>Market Structure and Potential Pullbacks</strong></h2><p>The current state of Bitcoin&#39;s price action is in a range-bound consolidation phase with strong resistance <strong><a href="https://invesmedia.id/apa-yang-mempengaruhi-nilai-dolar-as-ke-rupiah/" rel="noopener noreferrer nofollow">at $30,000</a></strong>. While there is potential for a quick move up if this resistance is broken, it is important to consider the market structure and the potential for profit-taking and resistance at higher levels. As always, investors should exercise caution and closely monitor the market for any significant shifts in sentiment or price action.</p><h2 id="header-3"><strong>Liquidity and the Potential for Quick Moves Up or Down</strong></h2><p>One key factor to consider in the current market structure of Bitcoin is the role of liquidity. As mentioned previously, there is significant liquidity between $31,000 – $35,000, which could lead to a quick move up if short liquidations occur. However, this liquidity could also be used by whales to fill large asks with minimal slippage, which could cause price to stagnate or even drop. It is important for investors to monitor the order book and watch for any significant buy or sell walls that may indicate large traders positioning themselves in the market.</p><p>Another important factor to consider is the role of long-term holders in the market. These holders, often referred to as &#34;whales,&#34; have a significant impact on the supply and demand dynamics of Bitcoin. As mentioned earlier, long-term holders may begin to move their coins out of the market as we move out of the bear market lows. This could result in increased selling pressure and a potential downward price movement.</p><p>However, it is important to note that Bitcoin has proven to be a highly resilient asset with a history of bouncing back from market downturns. The market has seen several bull and bear cycles over the years, with each cycle bringing new challenges and opportunities for investors. As such, it is important to take a long-term view of the market and not panic in response to short-term price movements.</p><p>The current state of Bitcoin&#39;s price action remains uncertain as it continues to consolidate within a range-bound structure. While there are potential bullish catalysts such as a break of the $30,000 resistance level and the presence of liquidity, investors should also be mindful of potential profit-taking and resistance at higher levels. It is important to closely monitor the market and remain vigilant in response to any significant shifts in sentiment or price action. With careful analysis and a long-term perspective, investors can navigate the market with confidence and make informed decisions about their Bitcoin holdings. []</p>

Bitcoin Consolidates at $30k: Liquidity, Resistance, and Long-Term Holders

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