For a week bears had made sure that Bitcoin would not cross the $30,000 range, but yesterday evening, May 22, the flagship currency recorded a strong bullish rally.
At the time of reporting, Bitcoin is trading at $30,567 which is up by 4.05% over the last 24hrs
Analyst Take On Bitcoin Price Action
A well-known crypto analyst Lark Davis states that on the daily chart, Bitcoin is in a huge divergence and the last time this was seen was in 2021. And he questions the traders that this will mean a big rally coming up?
Davis goes on to say that, while the global macro environment is not in a good stance, there is some optimism despite the gloomy outlook. It will be interesting to watch if Bitcoin can turn this resistance zone into a strong support zone. Historically, $30,000 has been a key level of support for Bitcoin.
Davis argues that given the lower highs and lower lows trendline, a relief rally up to $37,000 is possible. He further says that we may possibly be approaching the 200-day moving average at this time. However, this might mean that Bitcoin’s price falls to a low of $22,000 before making a clear breakout to the upside.
On-Chain Metrics For Bitcoin
At a basic level, Bitcoin’s on-chain indicators continue to indicate strength. The number of Bitcoin addresses holding more than one bitcoin has surpassed 1 million for the first time.
Whales have been doing some bottom fishing as the Bitcoin Fear and Greed Index remains in the high fear zone. According to Glassnode statistics, Bitcoin whale addresses with more than 10K BTC have increased during the latest market fall.
This indicates that the market’s weak hands have been quitting and passing over their supply to the market’s great whales. The growth in Bitcoin supply at exchanges will be one point of worry. That has, however, been a feature of every down market. A bullish turnaround might be beneficial now that investors have had their fill of blood.