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Fluctuations in Bitcoin Price Resistance


Bitcoin continues to post small daily fluctuations as the price fluctuates strongly and with little volatility. Meanwhile, the price is testing the important resistance zone, and if it is rejected, BTC may test the lower price zone. On the other hand, escape can lead to a short session.

Technical Analysis

Bitcoin has fallen above the 50- and 100-day moving averages for the past few months. Recently, the price was rejected from the 50-day moving average at $18,000 and has been declining since then. However, it attempts to break above the 50-day moving average. Despite the ongoing struggle with the 50-day MA, the price trend is not possible as full activity and demand are at low levels.

The market will regain the confidence of the players before they initiate a bullish crisis. In this case, we can mention the MACD indicator: This indicator is about to turn green, showing the first bullish signal in the short term, which can help BTC break above the 50-day mark average shape.

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4 Hour Chart

There is no current activity and little change is evident on the next chart over a 4-hour period. After going through a prolonged decline, the price moved from the $16,000 mark to consolidate below the $17,000 level. However, the main struggle for Bitcoin now goes beyond this confluence area. Assuming that the price returns above the mentioned level, the retracement to the 0.618 Fib level and the broken pattern will be the main obstacle to the $18,000 level.

Bitcoin On-chain Analysis

The following chart shows the 14-day moving average of the Miner and Exchange Flow metric alongside the Bitcoin price. This metric represents the total amount of coins transferred from miners to exchanges.

The increase in the metric indicates potential selling pressure from miners to cover their expenses during bearish periods of the market. As the chart shows, prices have dropped significantly each time the metric has gone up.

However, the metric fell recently and hit a new low for the year. This confirms that the selling pressure from the miners is weakening, which can be seen as an alarming sign for the price as they are an important group among those who market sales.

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