After massive volatility, will BTC finally break above $30K? (Bitcoin Price Analysis)

Bitcoin has received support at the crucial 50-day moving average, which sits at $27,000. This has led to a rally that aims to break through the significant resistance level of $30K. Despite the cryptocurrency’s overall bullish outlook, there is potential for rejection from this price range.

Technical analysis

Of Shayan

The daily chart

After a short-term correction, Bitcoin found support at the 50-day moving average, currently found at $27,300, resulting in another uptrend. This brought back the bullish sentiment.

However, Bitcoin’s recent price action indicates signs of weakness, as the positive sentiment appears to be insufficient to break through the next significant resistance region. If BTC manages to claim this crucial price level, an extended bullish rally can likely be expected.

The 4-hour chart

Bitcoin’s price has entered a critical area located between the strong support level of $25,000 and the significant resistance area of ​​$30,000. Recently, the price has experienced significant volatility within this area, resulting in massive red and green candles.

Despite this, the price is expected to consolidate within this crucial area in the short term. A breakout could potentially indicate the direction of Bitcoin’s upcoming trend.

Analysis of the chain

The following chart provides an excellent overview of Bitcoin’s price cycles along with the MVRV calculation, which represents the ratio of the coin’s market value to its realized cap. This calculation is used to determine if the price is overstated.

Historically, the MVRV calculation falls into the green zone during bearish market phases, indicating that Bitcoin is trading in the undervalued portion and the bottom of the cycle is forming. However, as the chart clearly shows, every time the MVRV calculation has peaked above 1, Bitcoin has experienced an increase, initiating the bull market.

Bitcoin’s recent impulsive rally has caused a sharp increase in the MVRV metric. Therefore, the market may have entered a bullish medium-term stage, which may be followed by unexpected movements and high volatility.