Bitcoin Free Falls to $30,000 But Recovery to $40,000 Will Happen Due To Strong On-chain Metrics

Bitcoin is struggling to stay at $30,000 after rebounding from a decline to $30,000 on Monday. Cryptocurrency pioneers emerged from the dilemma they were in on Monday morning, approaching key support at $27,500.

On the upside, price action has been limited, mainly due to the failure to break above the 50 Simple Moving Average on the 4-hour chart. At the same time, Bitcoin closed the day below $35,000, somehow prompting sellers to join the market.

At the time of writing, BTC was teetering at $33.975, while bulls struggled to change the narrative to $35,000. Trading above the 50 SMA would shift focus to higher levels, possibly at $40,000.

Technically, the path of least resistance appears to be downwards and Bitcoin is likely to revisit support at $30,000. It is very important that the buyers bottleneck at the 100 SMA remains to avoid the anticipated losses.

4 Hour BTC/USD Chart

Similarly, the bearish outlook is validated by the Relative Strength Index as recovery above the midline is unsustainable. Action towards oversold territory may require more sell orders, which could increase overhead pressure, forcing BTC/USD to drop back to $30,000 or key support at $27,500.

IntoTheBlock’s “Daily New Addresses” model highlights the strong growth of the Bitcoin network. The number of new addresses reached 685,000 on January 7. The correction occurred in recent days to 560,000 addresses per day (which is still relatively high) but recovery is underway with unique addresses on the network standing at 575,000.

  • Spot rate: $34,345
  • Relative change: -1.151
    Percentage change: -3%
  • Trend: bearish
  • Volatility: High

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