Bitcoin Hits Yearly High at $31,000, but Faces Selling Pressure

 Bitcoin Hits Yearly High at $31,000, but Faces Selling Pressure

Bitcoin Hits Yearly High at $31,000, but Faces Selling Pressure(Image-Getty)

Last week, Bitcoin (BTC), the world's largest cryptocurrency, reached a new high for the year 2023, surging to $31,000. On-chain data reveals that both Bitcoin shark and whale addresses have consistently accumulated more coins throughout the recent price rally.

According to Santiment's data, addresses holding between 10 to 10,000 Bitcoins have acquired a total of 71,000 coins in the past three weeks.

However, following its peak at $31,000 on Monday, Bitcoin has encountered selling pressure, causing its price to retreat closer to $30,000. Nevertheless, a positive on-chain indicator for Bitcoin is the decline in the BTC exchange reserve metric over the last month, which suggests a bullish sentiment among market participants.

Bitcoin's price has repeatedly tested the $30,000 level after surpassing it. While it has found support at this level, there are some concerning signals, such as a bearish divergence in the RSI indicator, which could indicate an upcoming correction or reversal.

If a decline occurs, the 50-day and 200-day moving averages at around $28,000 and $26,000, respectively, may act as significant support levels. Conversely, if the price continues to rise, it could reach the resistance zone of $38,000.

On the 4-hour chart, the price of Bitcoin has exhibited unpredictable movements, making it challenging to predict its future trajectory. Currently, it is testing the $30,000 level, and a breakdown could potentially lead to a decline towards the $27,500 level.

The RSI indicator has remained relatively stagnant, signifying a balance between buyers and sellers without a clear dominance. The ongoing struggle near the crucial $30,000 level contributes to the short-term uncertainty surrounding Bitcoin.