Bitcoin Analysis: BTC Edges to $30k. History May Repeat Itself

Bitcoin prices over the last five days were filled with little volatility as both the bulls and bears struggle for dominance. However, there are more greens on the charts over this period which indicates that the top coin is seeing little increase.

Breaking this down, the biggest moves happened on Monday when the current month started and BTC dipped as low as $27,666. It kicked off trading at $29,254 but hit the low and closed at $28k. This signifies a more than 3% drop in value.

We noticed an attempt at recovering the lost level the next day. However, it failed, but the largest cryptocurrency closed with gains of more than 2%.  After these notable moves, bitcoin saw meager movements.

The trend is changing as at the time of writing. BTC is on its third green of the month and slowly approaching the $30k resistance. It started trading at $28,890 and is exchanging at $29,588. It is also up by almost 3%.

The current price movement suggests an imminent breakout. Let’s look at some of the signs

Indicators are Positive

The Moving Average Convergence Divergence is the main metric to watch as its close to a key event. A closer look at the chart shows that BTC is currently experiencing a bullish convergence. This is as a result of the small increases the coin had over the last four days.

With a divergence, this signals the start of a bullish round and the apex coin is showing signs it is gearing up for such move.  The gradual hike in the Relative Strength Index is a prime example. The indicator is at 56 at the time of writing.

The Moving Averages are also positive at this time. Currently a support, the 50-day MA is at $28,525. The 200-day MA is also on an uptrend, which suggests that market trends are mostly bullish. This is an indication of an impending massive uptrend.

Let’s consider another factor.

Bitcoin Monthly Heatmap

History is the best teacher, they say and Bitcoin’s monthly return may hint at how the asset may perform in the coming days.

According to the chart above, May is one of the most productive months of the year. On average, the top coin gains more than 13%. Its biggest loss was 35% in 2021. Its biggest gain of 66% in 2017.

With this in mind, we may conclude that BTC may experience a significant increase in price. Let’s go over the key levels to watch.

Key Levels to Watch

Vital Support: $28,700, $27,900, $27,000

Vital Resistance: $30,000, $31,00o

Since March, bitcoin trade between a channel and broke out on different occasions. However, it retraced back to this pattern to continue the cycle. The $30k-$27k channel has more than two vital levels in it. The first is the $28,700 short-term barrier and the second; is $27,900.

Both of these supports are one of the most vital levels to watch. While the first support is a short-term, we may expect minimal struggle at the mark before a breakout. However, the mark held out on a few occasions and BTC resumed its uptrend.

A closer look at the charts, we noticed that anytime the $27,900 support breaks, bitcoin in most instances retests $27k