Bitcoin Analysis: Approaching $30,500

Bitcoin has performed extremely well in recent days. Over the past 48 hours, the coin has risen more than 5% and neared resistance at $30,500. Will Bitcoin really overcome this? Let’s look at the graphs.

The big picture

First, let’s take a look at Bitcoin’s weekly chart. Here each candle represents 7 days, giving us a long look back at price trends. This allows you to extract some price levels that previously caused price changes.

The blue ($28,100), black ($25,000) and orange ($19,800) lines have been drawn and these are currently the biggest supports for Bitcoin. With Bitcoin trading at $29,650, only the blue line is relevant as support.

If the price falls below this level, the black line should remain strong to prevent further declines. In this case, the orange line becomes the new support.

Positive days

But enough of these negative scenarios, because they are still far away. Bitcoin is performing well and finally entering the long-awaited gray area. After the coin moved back from the $25,000 line, it entered a small uptrend. It has been moving towards this resistance level at $30,500 for the past few days. The only question is: is Bitcoin strong enough this time?

The coin has been rejected several times around this price. If we look at the price history, we can see that the coin has been rejected here very many times. In fact, that was all the Mint did from April to August. So keep in mind that this is a place where many people are making profits and the price will not increase all at once.

Are there enough buyers this time?

However, it is not impossible! Recent attempts to break the $30,500 level have failed, but this has led to many sell orders being filled. This makes it slightly more likely that Bitcoin will surpass this. Ultimately, fewer and fewer sellers are left behind.

So things are going well and hopefully even better soon. Bitcoin needs to remain strong here as any small sign of weakness could be accompanied by new sell orders. For example, I’m talking about a lowest or lowest point. We especially do not want this to happen, because it could lead to an even greater decline.

It would be better if Bitcoin broke out of the gray zone and then showed that around $30,500 worth of buy orders were placed instead of sell orders. In my case, this would be confirmation that BTC has conquered this zone and can continue to rise. Until then, we’ll just have to wait and see. It is not unusual for Bitcoin to make strange jumps below this key resistance.