Bitcoin has not shown a decisive upward or downward movement for weeks and the price is stuck in a very narrow range. However, the period of price stabilization is expected to end in the near future and the market seems to be following a calm-before-the-storm scenario.
To Report Cryptopotato, there is no promising sign in the one-day view of the Bitcoin market and the price has so far failed to break through the dynamic resistances of the 50-day and 100-day moving averages. The resistance of these moving averages is currently around $20,000 and $21,000 respectively.
Despite the recent break of the downtrend line on the chart, until the resistance of the 50-day and 100-day moving averages is broken, as well as the $24,000 level, the overall structure of the market will continue to be bearish.
More time is needed to determine whether a bullish scenario will continue or if a break of the $18,000 support will open the way for the price to fall to $15,000 or even lower levels.
In the 4-hour view of the Bitcoin market, it can be seen that the levels of $18,000 and $20,000 remain intact and the price fluctuates in the range where $19,000 is its middle border. The return from the $18,000 level, however, has been accompanied by bullish signs.
As can be seen from the chart below, the price is forming a bullish flag and if everything goes well, the target of this chart pattern will be near $20,000 and a break of this level is also possible.
Conversely, if the support or the lower side of the flag pattern is broken further, this bullish outlook will also lose its validity. The relative strength index (RSI) is almost at the 50 level (middle axis) and this means that there is some uncertainty between buyers and sellers in determining the direction of price movement.
The continuous fall of Bitcoin in recent months has put a lot of pressure on the activists of various sectors of the digital currency market, and miners are no exception to this rule.
Miners are undoubtedly among the main actors of the Bitcoin ecosystem; Because they process user transactions and provide network security. These miners always have a significant amount of bitcoins in their possession, which they keep with the aim of making more profit from them in the future.
However, the price fall in recent months has destroyed the profitability of Bitcoin mining for some miners, and many of them do not have access to cheap energy and do not have financial and legal support. Financial pressure often causes miners to sell part of their assets to cover their operating costs. intrachain index “Inventory of bitcoin miners” also confirms this about the current bear market of Bitcoin.
This significant sell-off could put downward pressure on the market in the short term and encourage more holders to sell their holdings as the price declines. In addition, this catastrophic cycle can lead to lower levels than the current floors.
As a result, by keeping an eye on the Bitcoin miners inventory index in the coming months, we can guess the market’s next direction.