Bitcoin has been a boon for the crypto industry as it has remained firm in its protocol and visions since its inception. Rising from under $1 to the first crypto to cross the $50,000 mark, the way it has rallied in the past few years has been a complete shock for those who termed BTC as a fraud. The basic technology of transferring an asset without intervention from central authorities by Bitcoin is what has laid the foundation for the progressive development in digital assets we have been witnessing for the last few years.
It has been estimated that this crypto giant will be consuming as much electricity as consumed by the entire nation of the Philippines, which comes out to be 93,000 Gigawatts. A mind-bending number for sure, this highlights the requirement and need to transfer towards greener energy, which was an issue raised by Elon musk in May 2021 that caused it to plummet under $30,000. What about those concerns? Well, nothing, people are more willing to invest in a progressive digital gold rather than complaining about its non-eco-friendly approach of high power consumption. A vast majority of mining companies have shifted towards solar energy.
Bitcoin Price Analysis
Bitcoin is currently trading near solid support and is indicative of some consolidation before an uptrend movement can be restarted.
Bitcoin is trading in a narrow zone, which can also be referred to as a consolidation type pattern. This pattern is forced by the sellers at the higher valuation and is fed from below by buyers who expect the bitcoin to reach new highs towards $100,000. In reality, any downside movement in bitcoin created a sector-wide selling pressure on all cryptocurrencies, which has become one of the major signs of an uptrend market in cryptocurrencies.
While the levels are decent and trading near swing support of $44,000, we are unsure if this sentiment can last longer as BTC is trading below its 200 DMA. 200 DMA has been seen as a make or break level previously too. The 200 days moving average is currently trading near $45,819 and the 100 days moving average of $40,000. The second support also sits in tandem with a psychological level. Another of BTC’s support is around $37,000. While the supports are active at multiple levels, the resistance comes around $50,000 and $52,000.
RSI is trading at neutral levels, indicating a tussle between buyers and sellers, and there is no clear movement-based indication as of now. Until RSI dips towards 40 or rises towards 60, one should not just rely on the strength index for investing in bitcoin as per our BTC forecast. Volumes traded daily have also been seen falling consistently since the last month.
Bitcoin on hourly charts presents a clear picture of a slowly downwards moving support zone. At first dip, it took support from $46,000 and moved up, followed by a dip from $45,000 and again rose towards a small high. Once again, BTC can be seen falling and took support from $43,800. RSI indicator is currently moving towards new overbought zones indicating stronger price action.