Bitcoin stalls at around $28,000, is this the calm before the storm? (BTC price analysis)

Bitcoin stalls at around $28,000, is this the calm before the storm? (BTC price analysis)

Bitcoin's recent uptrend has stalled, with its value falling from a nine-month high of $29,180 to $26,900 over the past week. Currently, the price is in a crucial zone and in order to overcome this significant barrier posed by the $30,000 resistance level, greater demand and purchasing power must be generated.

Technical analysis

From Shayan

The weekly chart

The price of Bitcoin recently reached a critical price zone of $30,000. The chart shows that this range is a significant resistance level as it coincides with the major swing low that Bitcoin formed back in May 2021 following the massive crash caused by China FUD.

Price action confirms this idea as the impulsive uptrend stalled once Bitcoin reached this crucial resistance region. Nonetheless, the cryptocurrency recently crossed above the 200-week moving average, representing an important sentimental level and offering a generally bullish outlook.

If Bitcoin bulls manage to push the price above this crucial region, it will likely initiate a long-term positive trend towards new all-time highs. Therefore, it is crucial to monitor price movements in the coming weeks.

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The 4 hour chart

On the 4-hour time frame, Bitcoin price has formed an ascending triangle pattern and is approaching the tight range. This suggests that BTC is likely to break out of the triangle in the next few days, and the direction of the price movement will give the cryptocurrency a short-term bias.

However, uncertainty will remain until the price exits the static consolidation range between the $25,000 support and $30,000 resistance levels.

In conclusion, based on recent price movements, a short-term rejection followed by a consolidation correction phase appears likely in the coming days. During this time it is important to monitor the situation closely.

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On-chain analysis

From Shayan

Bitcoin's impulsive uptrend has stopped as the price began consolidating with no apparent direction.

There are two main reasons for this. The first is that short-term holders or investors who recently purchased BTC have decided to sell their holdings to cash out their profits or exit the position based on their average cost basis.

The second reason is that “whales,” or investors who own a significant amount of Bitcoin in the 1,000 to 10,000 BTC range, spent more than average, especially when the price was around $28,000.

This increased selling pressure has led to a divergence between Bitcoin's rising price and declining whale holdings, which have fallen to their lowest levels since early February.

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