Looking at the recent developments of the Bitcoin market, we see an increasing effort to push the price as high as possible to achieve a new ATH in 2021.
At first glance, it seems that bulls are on the right track to meet this goal. Technical analysis and indicators, on the other hand, still signal us to hold our horses.
The first crucial finding is the ongoing functionality of the reverse zone, starting at $58,200. This confirms today's downward rebound of BTC, immediately after entering the zone.
The second finding is the insufficient volume of purchases necessary for growth. Currently, it is too small for the growing trend to continue.
On the other hand, Bitcoin has been growing rather consistently since October 6, evoking increasing confidence and a bullish mood. It is only a matter of time before stronger players jump on the train, placing large purchase orders in the market.
Looking at recent events, one of the most significant reports was the U.S. SEC approving the first ETF focused on investments in crypto companies.
We should also mention that the median transaction size of Bitcoin has increased rapidly since September, reaching 1.3 BTC. This indicates that ever more institutional investors with large capital are trading on the market.
Important price areas:
- The $58,200 to $62,000 range is a reversal zone
- New support at $50K - $48K
- Support at $42K - $43K
- Key support in the area of $28K - $30K
- Next support at $22.5K