Bitcoin’s price has been fluctuating between the 50-day moving average at $28,310 and the psychological resistance level of $30K. The direction of the upcoming rally heavily depends on whether Bitcoin breaks out of this range to the upside or downside. A breakout beyond the $30K region will significantly impact market sentiment, while a decline below the 50-day moving average may result in volatility and consolidation in lower price ranges. The RSI indicator currently shows a state of equilibrium between the bulls and the bears, indicating a consolidation stage alongside volatility in the upcoming weeks.
Miners’ Position Index (MPI)
Despite Bitcoin’s recent bullish run, miners seem to be more pessimistic. The miners’ position index (MPI) metric, which displays the ratio of total miner outflow to its one-year moving average of total miner outflow, has spiked recently, showing its highest values since January 2021. High MPI values indicate mass selling by the miners, who are one of the most critical cohorts in the market. Their selling pressure could lead to a reversal and continuation of the bear market in the short term.
The Rise of Bitcoin’s Price
Bitcoin’s price has been on an upward trend since rebounding from the $16K level a few months ago, giving hope to many investors that the bear market is finally over and a new bullish phase has begun. However, Bitcoin failed to surpass the crucial resistance zone of $30K, resulting in a slight decline. The price is currently consolidating within the tight range of the 50-day moving average at $28K and $30K.
Monitoring the 4-hour timeframe, it is apparent that the price has been stuck inside a static range between $30K and $27K. Recently, Bitcoin experienced high volatility, resulting in big red and green candles without showing any clear sign of the overall market bias. Ultimately, Bitcoin’s price is likely to break out of this range in the upcoming weeks, and the direction of the cryptocurrency’s following trend will heavily depend on the breakout’s direction.