Bitcoin Price In Range Under 30k, Miner Accumulation, And Impending Bullish Breakout
Bitcoin price has been moving lower within the narrow range between $29,000 and $30,000 since last week, with analysts starting to acclimatize to declines stretching to $28,000.
The most prominent crypto’s commendable stability can be attributed to low volatility, decoupling from the stock market which means limited reaction to economic factors like Thursday’s Consumer Price Index (CPI).
Bitcoin Price Prediction: Stable But Ready To Move
Bitcoin price is trading at $29,404 after testing and rebounding from support at $29,000. After successfully dealing with resistance at the 50-day Exponential Moving Average (EMA), the path with the least resistance seems to be to the upside, bringing the psychological seller congestion at $30,000 within reach.
Despite the flat movement of the Moving Average Convergence Divergence (MACD), a buy signal is highly likely. Traders seeking new exposure to long positions in BTC should be looking out for the MACD line in blue crossing above the signal line in red.
A bullish rectangle, as observed on the chart implies that Bitcoin price is in the process of breaking out to higher levels.
The bullish rectangle pattern signifies a strong uptrend that pauses before resuming its upward movement. It forms when the price moves sideways between two parallel horizontal lines, creating a box-like shape.
Traders can capitalize on this pattern by buying when the price breaks above the upper line, indicating a continuation of the bullish trend.
Note that, traders use the height of the rectangle to estimate the target price after the breakout. In this case, buy when Bitcoin has broken above $resistance at $31,450 and consider cashing out at $33,911.
Ahead of the rectangle breakout, investors may ride the wave to $31,430 by buying BTC as it recovers above the 50-day EMA (red) at $29,346.
If range support at $29,000 weakens, the MACD might confirm a sell signal instead, thus forcing Bitcoin to abandon the breakout above $30,000.
Miner Accumulation To Precedes Bitcoin Price Rally
Discussions around major institutional investors like Blackrock entering the crypto market have continued to heat, especially with the Securities and Exchange Commission (SEC) deliberating approving the first exchange-traded product (SEC).
According to on-chain insights from CryptoQuant “… if ‘Token Transferred’ and ‘Velocity speed’ increase along with the price increase, this is likely a precursor to an upward rally.”
Meanwhile, miner activity implies that Bitcoin is consolidating ahead of the next bullish breakout. Past bullish cycles have shown that miners tend to accumulate ahead of the halving.
“Miners were sellers starting in Aug 2022 and finally starting on May 27 this year they started accumulating. Technically speaking, it’s in their best interest economically speaking to start accumulating before the halving which is scheduled for April 2024.”
However, there was a noticeable increase in BTC inflows into spot exchanges likely to have dampened the potential momentum from “muted outflows as price hovered in a tight range of 29k-$31k.
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