Bitcoin is experiencing a non-stop rally while trading sentiment moves from fear to greed with each new level conquered. While many are still waiting for a price drop to jump into the action, others have rushed into the market fueling the current price action.
Over the past week, Bitcoin has been moving sideways. As of Thursday, the asset experienced a spike to trade above $29,000 before eventually slipping below $28,000 as a retracement. Meanwhile, at the time of writing, the asset seems to be gearing for a rally up by 0.4%.
Bitcoin To Tap $30,000 Region Before Slowdown
Bitcoin seems poised to eventually tap into the $30,000 region and beyond sooner or later. However, it is worth noting that this specific price mark could be where Bitcoin starts slowing down from its prolonged rally.
The asset’s price shows two major highs. One can be found around the $30,000 region, while the other is just above the $40,000 region.
In the daily timeframe, the asset is looking to tap into the liquidity of the major high at the $30,000 zone as it is closer to that level. Should Bitcoin eventually tap into that zone, we could see a major slowdown in the rally before resuming the bullish momentum.
This is because on every price chart, the liquidity of a major high as being taken there is always either a significant retracement or a prolonged range. This dynamic hints at accumulation from investors before a push that results in a bullish move or an expansion to the upside.
In addition, major highs also provide a take-profit opportunity for larger investors who might not be in it long-term. This means several large investors would have put a set take profit on their long position for Bitcoin, which will be triggered if Bitcoin should ever tap into the $30,000 zone.
In that sense, Bitcoin could trend sideways or plummet into previous support if large investors decide to take profits on their positions.
BTC Price Action
Following BTC’s rebound amid the US banking crisis, it has continuously risen in the past 7 days. The asset has moved from $28,000 as of March 24 to trade at $24,463 at the time of writing after a price spike above $29,000 yesterday.
Bitcoin currently has a 24-hour trading volume of $21.7 billion, with a market capitalization of $549 billion. Interestingly, the asset’s market cap hasn’t moved much over the past 7 days. Its market cap was still valued at $542 billion last week Friday.
Featured image from Shutterstock, Chart from TradingView