Day Trading Bitcoin: Analysis of Price
In this article we will look at the latest news Bitcoin daily trading is and analyze possible future scenarios related to the price of the most important cryptocurrency on the market.
Will Bitcoin manage to cross the fateful $30k mark? Will we see another low in the coming months below the November 2022 low with a target below $15k?
Let’s figure it out together.
Price update on Bitcoin daily trade
In the last 24 hours, Bitcoin has lost 2.33% if that is not possible $30k breakout attempt in the previous days.
At the time of writing, the price of Bitcoin is 27,790 dollars, the volumes in the last 24 hours are about 13.7 billion dollars, and have increased by 30%, which is quite normal considering that the activities of the financial market participants are considerably reduced over the weekend.
Market value of $537.5 billion and market dominance of 46.2%.
Analyzing the price action of Bitcoin’s daily trade, we can say that we are currently compressed in one range of $26.5k to $29kwith decidedly low volumes.
On Binance, this volumetric trend is more pronounced than on the other cryptocurrency exchanges: this probably happened due to the end of the 0-fee campaign on the BTC-USDT trading pair.
In terms of the derivatives market, open interest on Bitcoin futures has reached 11 billion dollars mark: Binance, CME, Bybit, OKex and Bitget share the largest share of the volumes in these markets.
On the liquidation front, it has been more long liquidations instead of short liquidations in the last 24 hours, although the numbers are not very significant, there could easily be a reversal.
Analysis and prediction of Bitcoin’s future prices
Bitcoin is currently in a perfect equilibrium zone.
The fear of a continuum of restrictive policies from the Federal Reserve is spooking investors, who could see a further rise in interest rates, resulting in a devaluation of riskier financial securities such as stocks and crypto-assets.
On the other hand, the risk of a US debt crisis benefits Bitcoin, which seems to have established itself over the years as a “store of value” assetwhich means that it is able to maintain the nominal value of the investment in times of uncertainty and fear in the markets.
This gives food for thought when we consider that Bitcoin, along with the rest of altcoins, represents one of the most volatile assets with significant inherent risk.
This narrative in the recent period benefited Bitcoin, which took the opportunity to record a rally that started on March 11, 2023. Since that day, there has been a price increase of almost 50%.
Bitcoin is currently in a well-defined trading range: a breakout of $30k, or a breakdown of $26.5k could trigger a clear trend.
If a breakout of any of these levels does not occur, Bitcoin is likely to continue this lateralization phase with low volumes.
If there is a break on the upside, the first potential target is the $35k level, a level that served as support in early 2022 before triggering the bear market that has guided us through the year.
Should there be a downward break, the likely targets are incremental: $25k, $20k and finally $15k. A further decline below these prices will confirm the continuation of this crypto winter.
However, there is no worrying data at the moment: Bitcoin remains above the 50-period moving average on the daily chart.
On the weekly time frame, it is interesting to note that after the rally that started on March 11, the major cryptocurrency has remained above its 10- and 5-period moving averages.
Generally, a rally followed by a short period of laterality is more likely to be a continuation of the trend rather than a reversal.
However, there is something to consider, which is the macroeconomic scenario appears to be one of the most complicated of the last decade: war, debt crisis, inflation and restrictive central bank policies are factors that are determined within the price action of Bitcoin’s daily trade.
We cannot conduct analyzes without taking into account these variables which can completely turn the tables.
To summarize, the situation at the moment is stablee. an upward or downward movement of Bitcoin accompanied by high volumes may trigger certain scenarios, but these must necessarily be integrated with the macroeconomic situation worldwide.
Bitcoin daily trading: analysis of top addresses
One of the most interesting things to note about the daily trading of Bitcoin is development of top addresses in the Bitcoin protocol.
As we know, it is very important to track and analyze the movement of addresses containing more BTC (so-called “whales”) to get a clue about the cryptocurrency’s price movement.
According to Glassnode’s data, regarding the number of addresses with a balance of more than 10k coins, we can see that:
- since Q2 2022 there has been a sharp increase in the number of these units;
- the number of these units grew in parallel with the decline in BTC prices;
- since November 2021, the month of the all-time high in BTC prices, there has been an increase of more than 30 units of this type of address.
Although most experts agree that we are still in the middle of a bear market, the data on multi-unit addresses seems to suggest that an accumulation is in progress.
This does not mean that we can celebrate a continuation of Bitcoin’s rally soon, but rather that major players have taken advantage of the selling period to trade coins.
It will be interesting to see how this calculation develops in the coming months.
It is worth remembering that Bitcoin’s halving is approaching: there are 381 days, or rather 56,270 blocks, until the next halving of miners’ rewards for mining a block.
Historically, this date has been good for Bitcoin prices, which started the various bull market periods precisely as a result of these updates.
