Bitcoin Fake Breakout? Will BTC Price Retest $30,000 Before Attempting A New ATH?

On Nov 3, 2023

Bitcoin price has gained almost 30% in value within the past month, indicating a strong bullish influence over the crypto market. Further, the dominance of Bitcoin has increased to 52.8%, suggesting a rise in accumulators for the star crypto.

CryptoSoulz, a well-known technical analyst with substantial followers of more than 42K on the “X” platform, believes that the BTC price has to retreat from this point and has also posted a tweet on his handle explaining the on-chain analysis of Bitcoin and providing reasoning to his prediction.

1. $BTC short position :
– Key resistance is at 37,370$, which shouldn’t be retested from here
– LIQUIDITY has been taken at 36,000$, its a trigger to take SHORT positions
– $BTC local top is at 36,000$, and made a LONG wick and retraced
– Deviation is the confluence to short pic.twitter.com/8djYKIxEn9
— CryptoSoulz (@SoulzBTC) November 2, 2023

The analyst highlights the next key resistance level of the BTC price at $37,370, which is predicted not to be tested soon as the price experienced a short price at around $36,000 recently.

Bitcoin price had recently managed to break out of its key resistance at $35,000, following which the price attempted to make a run to test its upper level at $36,000. Still, the rally was short-lived as the price experienced a significant pullback by the bears.

This resulted in the price forming a long wick in its chart, thus losing momentum and trading below $35,000 again.

Bitcoin On-Chain Analysis:

The MM’s SPOT was primarily seen uptrending, and then the Perpetual futures contract (PERPS) followed the trend. Further, the SPOT Orderbook (OB) was increasing but then displayed a decline. PERPS followed the trend and displayed a decrease as well. The analyst assumes that if 36,000$ is a local top for BTC price, then the MM’S SPOT and PERPS should decrease in the coming time.

The analyst further explains the on-chain matrix of Bitcoin. BTC’s price has been on an uptrend since October, indicating its MS to be bullish. The simple moving averages (SMA) first broke the 200D level, following which it successfully broke out of the 200W level, resulting in the price experiencing massive price action.

Source: TradingView

Presently, the 365D SMA acts as a support for the price and is expected to be retested soon.

Bitcoin has experienced a liquidation at $36,000, indicating the price to experience a correction soon. CryptoSoulz predicts the second liquidating pool should take place at around $33,000, with the next liquidation pool at $31,000, following which the market may experience a bounce back in the coming time.