BTC Looking for Direction as FOMC Meeting Looms (Bitcoin Price Analysis)

The Bitcoin price remains in a consolidation phase below the $30K resistance level following its unsuccessful attempt to break above it a few weeks ago. Nonetheless, several nearby support levels have the potential to act as catalysts for a possible bounce.

Bitcoin Price Technical Analysis

By: Edris

The Daily Chart:

On the 4-hour chart, the price is still trapped inside the large descending channel and is on a slow downtrend, making lower highs and lows. Currently, the $26K short-term resistance is preventing the price from rallying toward the higher boundary of the channel. If the price encounters another rejection to the downside, a retest of the $25K support level would be imminent.

The RSI indicator also oscillates around the 50% level, providing limited insight on whether the momentum is bullish or bearish, as buyers and sellers are battling at a key area.

Source: TradingView### The 4-Hour Chart:

On the 4-hour timeframe, the Bitcoin price remains within a significant descending channel, displaying a gradual decline characterized by lower highs and lows.

Currently, the BTC price is facing resistance near the $26K level, impeding its upward movement toward the channel’s upper boundary. If the price encounters another rejection, it will likely revisit the $25K support level. Moreover, the RSI indicator, hovering around the 50% level, provides limited guidance regarding the momentum as buyers and sellers contend at a critical juncture.

Source: TradingView## On-chain Analysis

By: Edris

Bitcoin Exchange Reserve

Bitcoin’s price has undergone a corrective phase after encountering resistance at the $30K level. This correction may be due to investors taking advantage of the increase from the $17K region to sell their coins at a higher price. However, a closer examination of the exchange reserve metric shows a shift in market behavior.

The chart reveals a consistent increase in the exchange reserve metric during the price rally, indicating profit-taking. Nevertheless, after the recent correction, there seems to be renewed accumulation by market participants, resulting in a rapid decline in the exchange reserve metric in the past few weeks.

If this trend persists, the reduction in supply and potential increase in demand may contribute to an upward trend in the upcoming weeks. However, it is also important to consider the perpetual futures market analysis for a more comprehensive outlook.

Source: CryptoQuant