Bitcoin has shown a notable 9% increase after a consolidation period, with the $18K level proving once again to be a strong support level, confirming its sentimental importance. This rise follows the price’s repeated testing of the $18K support, highlighting its significance in the market’s current structure.
The Daily Chart: Key Support and Resistance Levels
The $18K-$19K zone remains the critical support range for Bitcoin. A failure to maintain this level could lead to a sharp decline toward $15K. Currently, Bitcoin has been supported at $18K for the fourth time, with the next target being the 50-day moving average (MA) at $21.9K. Notably, the 50-day moving average is about to cross above the 100-day moving average, which can be considered a bullish indicator. A successful breakout above both the 50-day and 100-day moving averages would increase the likelihood of a mid-term bullish trend.
The 4-Hour Chart: Resistance at $22.5K
On the 4-hour chart, Bitcoin’s price surge after testing the $18K support once again highlights its strong sentimental power. The price has increased by approximately 9%, breaking through the multi-week descending trendline and continuing its upward momentum. A key resistance is seen at $22.5K, aligning with the 61.8% Fibonacci retracement level for the recent bearish expansion. Surpassing this resistance would set Bitcoin on course for a more substantial rally.
Sentiment Analysis: Accumulation Signals Market Recovery
According to the Coinbase Premium Index, there has been a significant shift in sentiment. The index, which tracks the price gap between Coinbase Pro and Binance, dropped into negative territory after Bitcoin fell below $30K, signaling significant selling pressure from US investors. However, as the price approached the $20K level, US institutions began accumulating Bitcoin again, signaling potential demand returning to the market. This behavior suggests that the bottom of the bear market may be near, and the market could see a more favorable supply and demand dynamic moving forward.
