It’s squeezing your butt! Bitcoin (BTC) price has reached $30,000 today, a key support level for the bulls to keep BTC above. The initial reaction in this price area seems to be somewhat positive with a nice rebounce that sends the price bouncing back quite a bit right now.
Bitcoin (BTC) Price Hits $30k Again, What Happened Then?
Today, bitcoin has tapped back to $30,000 for the first time since May 19. The price even briefly went below, forming a low of $28,800 around 3:00 PM. It’s been a while since the last time this price was tapped. That was at the end of January this year. That was the low point of a 30% correction at the time.
It was therefore already clear that this zone around $30,000 is an important support zone. The price has therefore already found support here in January and has done so several times in recent months. But what exactly happened when bitcoin fell below $30,000?
The bitcoin price briefly dipped below, but this immediately caused a huge spike in trading volume that eventually turned out to be predominantly buying volume. The price of bitcoin is currently $32,475 on crypto exchange Coinbase.
In short, a lot of traders already had their wallets ready to buy big under $30,000. The trading volume hadn’t been that big in a month. Tempting Beef, an on-chain analyst, also noticed that large amounts of bitcoin were immediately sent away from the exchanges, which is usually a positive sign that whales are stocking during the dip. He does state that the influx of bitcoins on exchanges looks bearish for the time being.
“I don’t want to share conflicting information because the inflow looks bad, but if you wonder who is buying, I see some spikes in the outflow.”
A bullish sign on the daily chart?
Despite the fact that the situation still looks rickety with a bitcoin price that has fallen sharply in recent days and increasing bitcoin inflows on exchanges, there is still a small positive signal. On the daily chart, we see the relative strength index (RSI) continuing to set higher lows.
While the price has mainly moved sideways in the past month with a lower low today, the RSI is in an upward trend. This is also known as a bullish divergence. This is a signal that may show a possible trend reversal.
However, it doesn’t necessarily mean it will. The macro situation is still dominated by panic over China’s crackdown on bitcoin miners. Whether the whales hitting around this price level will be enough to rekindle confidence will remain to be seen in the coming days. Ultimately, it all depends on your perspective on how you experience this situation!