Despite aggressive bullish pressure, the Bitcoin price was unable to sustain gains above its 12-month high of $31,428.
Monday’s Bitcoin price is $30,302 after losing 1.1% of its value over the past 24 hours. Over the weekend, the largest cryptocurrency maintained a favorable outlook, with consolidation prevailing above $30,000. Despite aggressive bullish pressure, the Bitcoin price could not sustain gains above its 12-month high of $31,428.
Bitcoin Price Fosters Healthy Retracement
According to analysts at Rekt Capital, “When a BTC correction ends so convincingly… It’s highly unlikely another deep correction will occur right after. Any downside would likely be dips as part of new uptrend continuation.”
The Bitcoin price is presently attempting to find support at $30,000. This comes after a decline from $31,442. This correction is likely part of the larger uptrend caused by the last market structure improvement.
Similarly, according to the analyst at Rekt Capital, BTC may retrace to $30,000 or $29,000 to enable more buyers to enter the market and capitalize on the anticipated move to $38,000.
According to the graph, Bitcoin’s market structure has considerably improved over the past week. The rise above all applied moving averages (the 50 EMA, the 100 EMA, and the 200 EMA) and the short-term descending trendline from mid-April indicate that investors are in the driver’s seat.
The Moving Average Convergence Divergence (MACD) purchase signal strengthened the bullish narrative. However, investors may need to closely monitor the MACD over the next few trading sessions or days.
Remember that a sell signal could be generated if the blue MACD line crosses below the red signal line. The Relative Strength Index (RSI), which is presently in the overbought region, may retreat to the neutral territory, thereby intensifying the overhead pressure.
The Percentage of Bitcoin available on exchanges falls.
Leading analytics firm Glassnode’s on-chain data reveals that the proportion of Bitcoin supply held by exchange addresses has declined since the outbreak. The graph below shows that this supply accounts for approximately 11.7% or 2.27 million BTC.
For the first time since December 2017, this represents the lowest level of BTC supply across all exchanges.
As the exchange supply declines, selling pressure tends to diminish significantly. Increasing demand for Bitcoin creates favorable conditions for a rally. Investors may wish to monitor Bitcoin’s performance at $30,000. A reversal from this level would indicate that bears are prepared to drive BTC to $38,000.
On the downside, the Bitcoin price may return to the $29,000 and $28,000 support levels. Such a decline would enable bulls to access fresh liquidity as they press for a more robust trend reversal.
