Bitcoin Price Analysis: BTC Stable Above $40,000 As Consolidation Takes Precedence

Bitcoin Price Analysis: BTC Stable Above $40,000 As Consolidation Takes Precedence
  • Bitcoin price holds firmly to the demand zone above $40,000 and is reinforced by the 100-day SMA.
  • The IOMAP on-chain model highlights immense resistance and support levels, hinting at BTC’s consolidation lasting longer.
  • The flagship cryptocurrency appears to be in stasis between a rock and a hard place. On the downside, $40,000 has grown to be formidable support, while on the upside, $44,000 is a significant hindrance to the uptrend.

    At writing, Bitcoin trades slightly above $40,000, and bulls seem to have the upper hand. The 100-day Simple Moving Average (SMA) fortifies the demand zone in green while the 200-day SMA adds weight to the resistance, marginally above $44,000.

    Bitcoin Price Consolidation Could Last Longer

    Many analysts believe that Bitcoin is at a crucial junction and that bulls will likely emerge winners in the ongoing brawl. However, it is essential to anticipate a more extended sideways trading period based on the overall technical picture.

    As established, Bitcoin is free to move between $40,000 and $44,000 in the meantime, but action to the supply zone in red would not be an easy task. The Moving Average Convergence Divergence (MACD) slightly inclined to the bearish side, notwithstanding the leveling motion.

    On the other hand, the Relative Strength Index (RSI) holds 40 as the immediate support and points upward. This infers that buyers have a firmer grip and could eventually push the price. Hence, the tug of war between the bulls and bears will likely continue in the coming sessions until we get a formidable break, either above $44,000 or below $40,000.

    BTC/USD Daily Chart

    The picture of Bitcoin in stasis is also reflected from an on-chain point of view. According to IntoTheBlock’s IOMAP, Bitcoin has few open spaces to explore. Immediate on the upside, the bellwether cryptocurrency is coming to terms with the immense barrier, running from $41,763 to $43,025. Here roughly 901,600 addresses bought approximately 574,800 BTC. This zone is succeeded by several other relatively strong resistance such as $43,625 and $44,995.

    On the flip side, Bitcoin sits on top of a robust demand zone, spanning from $39,240 to $40,504. Here, around 544,000 addresses purchased nearly 520,000 BTC. As long as the support and the resistance remain intact, Bitcoin will stick to consolidation a while longer.

    Bitcoin IOMAP Chart

    Bitcoin Intraday Levels

    Spot rate: $42,000

    Trend: Bullish bias

    Volatility: Low

    Support: $40,000

    Resistance: $44,000

    Source