Did Bitcoin Reach a Local High? Here's the Level to Keep an Eye on: Study of Bitcoin Prices

Bitcoin's impetuous surge appears to have paused for the time being, and the price will most likely enter a corrective phase before the next leg up. Overall, Bitcoin is facing strong resistance at $30K, which has yet to be challenged. Technical Evaluation

The Daily Chart by Shayan

After forming a retreat to the 61.8% Fibonacci entrancement level at $19.6K, the price began a huge recovery that has resulted in a current high above $28K. But, the bulls were unable to break through the strong resistance zone of $30,000.

This price zone also serves as a psychological barrier zone, as many traders feel that if the price exceeds $30K, the bear market will be declared over. Yet, there is a significant divergence between the price and the RSI signal, which might lead to a short-term drop or consolidation stage.

The 4-Hour Schedule

In the 4-hour period, the impulsive bullish rise is more visible. But, recent price activity suggests that the bullish impetus has waned and that the price is about to enter a short-term consolidation or correction phase.

In this scenario, Bitcoin might retest two important support levels: the $25K substantial support level and the price zone between the 0.5 and 61.8 Fib retracement levels, which is about $24.4K and $23K.

Yet, there is a divergence in the 4-hour timeframe between the price and the RSI indicator, raising the chance of a short-term correction before the next substantial increase.

Study of the Supply Chain

Shayan wrote this.

As a result of Bitcoin's recent price explosion, traders' portfolios have risen over the break-even threshold, resulting in a change toward a bullish market mood.

Net Unrealized Profit and Loss (NUPL) is a ratio that calculates the profit or loss of all coins by dividing the difference between market cap and realized cap by market cap.

If the most recent coin transfer is a buy, NUPL shows the overall profit or loss across all coins. After months of negative values, the current surge pushed NUPL into the yellow zone, indicating that more investors are now profiting. This move might be regarded as a bullish indicator since fewer market players are under pressure to sell their coins in order to avoid more losses.