Are Bitcoin bulls still in charge and driving the BTC price to $30.000?

Are Bitcoin bulls still in charge and driving the BTC price to $30.000? - image 2022 07 26T07 08 33 316ZThe Bitcoin market consolidated $23.000 in February compared to a 40% rally in January. With the looming global regulatory scrutiny over cryptocurrencies, cryptocurrency traders have been observed taking profits at higher rates in the recent past. According to on-chain analyst firm Santiment, more Bitcoin and Ethereum traders have sold their coins at a loss in the past week. Nonetheless, long-term holders have hoarded more coins and moved their digital assets into uncustodial wallets.

Over the past year, the Bitcoin market has outpaced traditional stocks, including the Nasdaq and the S&P 500, in terms of gains. Additionally, more institutional and country investors have focused on the digital asset sector, where Bitcoin holds the highest dominance, accounting for approximately 42%.

A closer look at Bitcoin analysis

La quotation of Bitcoin has soared since the calendar reversed, despite the weekly death cross that occurred early last week for the first time in its history. A death cross involves the 50 and 200 MAs, which cross to form a resistance trend line. However, the daily timeframe of BTC/USD recorded a golden cross which significantly strengthened the bull's case. Also, the price of Bitcoin has formed higher highs and higher lows on the daily timeframe which is considered to be an increasing trend.

Having bounced off the $25k level multiple times over the past two weeks, Bitcoin bulls will need to act on this resistance zone before continuing towards $30k. A breakout towards $30k is highly plausible based on a historical study after Bitcoin bottomed during bear markets.

However, the daily RSI – one of the leading cryptocurrency trading indicators – has pointed to a possible correction in Bitcoin in the coming weeks. Notably, with the price of Bitcoin forming a possible double top on the daily time frame, the daily RSI has indicated a declining divergence. Also, the daily RSI is retesting the 50 level, so a further decline could imply an imminent price correction.

Notably, the price of Bitcoin is about a year away from the halving event, which cuts market supply in half. With demand for Bitcoin surging, the overall effect should rejuvenate the bulls.

Historically, the price of Bitcoin has skyrocketed a few months after the halving event, which was scheduled for mid-April next year. Meanwhile, crypto asset analysts expect a multi-quarter consolidation, which will serve as the basis for the next bull market. As a result, volatility on both fronts is expected to spike in the coming months.