Bitcoin’s price has been consolidating below the $28K level over the last few days, failing to continue its momentum toward the $30K resistance level. The price is currently testing a key area and should be closely monitored.
It is currently retesting the $27,500 support level, and a breakdown could lead to a further drop to the 50-day moving average in the short term. On the other hand, a bullish rebound and a break above the 200-day moving average could finally pave the way for the market to target the critical $30K resistance zone once again.Looking at the 4-hour timeframe, the $27,500 support level appears to be on the verge of a breakdown.
The chart illustrates that this metric had been trending upward along with Bitcoin’s recent surge, indicating increased buying activity among American investors. However, the rapid decline in this metric suggests that US investors played a significant role in the recent market downturn. If this trend continues and the metric drops below 0, it could signal further declines in the market in the coming weeks.