- CryptoSoulz believes that BTC’s price needs to retreat from this point and shares a tweet emphasizing Bitcoin’s on-chain analysis to support the prediction.
- Bitcoin’s price has recently managed to break through its major resistance level of $35,000 and tried to make a run to test the upper levels.
- The analyst also explains Bitcoin’s on-chain metrics. Bitcoin’s price has been in an uptrend since October, indicating that the overall market sentiment has been bullish.
Bitcoin’s price has struggled to maintain its latest rally and dropped below $35,000: Could further decline be possible? Current on-chain data!
Bitcoin Price Couldn’t Stay Above $35,000
Bitcoin’s price has gained nearly 30% in the past month, indicating a strong bullish sentiment in the crypto market. Additionally, Bitcoin’s dominance has increased to 52.8%, signifying increased accumulation for the leading cryptocurrency.
CryptoSoulz believes that BTC’s price needs to retreat from this point and shares a tweet emphasizing Bitcoin’s on-chain analysis to support the prediction. The analyst highlights the next significant resistance level for the BTC price at $37,370 and predicts that the price is unlikely to test it soon, as the price recently had a brief stint around $36,000.
After successfully breaking through the major resistance level of $35,000, Bitcoin’s price attempted a run to test the upper levels but the rally was short-lived due to a significant pullback by bears. This resulted in a long wick on the price chart, causing it to lose momentum and trade below $35,000 again.
Bitcoin On-Chain Analysis
MM’s SPOT was primarily seen in an uptrend, followed by Perpetual Futures contracts (PERPS) tracking the same trend. Additionally, the SPOT Orderbook (OB) was on the rise but then showed a decline. PERPS also followed the trend and displayed a decrease. The analyst assumes that if the $36,000 BTC price is a local peak, then MM’s SPOT and PERPS need to decrease soon.
The analyst also elaborates on Bitcoin’s on-chain metrics. Bitcoin’s price has been in an uptrend since October, indicating a bullish market sentiment. Simple moving averages (SMA) first broke the 200-day level and then successfully crossed the 200-week level, resulting in a significant price movement.
Currently, the 365-day SMA serves as support for the price and is expected to be retested soon. Bitcoin had a liquidation event at the $36,000 level, indicating that a correction is expected in the market soon.
CryptoSoulz anticipates the second liquidation pool to be around $33,000, with the next liquidation pool occurring around $31,000, and this could lead to a market reversal in the near future.
