As Bitcoin breaks through $30,000, it is important to determine upcoming support and resistance levels
Following Bitcoin’s breakout of $31,300, InTheBlock has split price levels on the chart that traders and investors should watch out for, as they can bring additional volatility and unexpected price action.
Money Around Price Metric and first support
For determining local support and resistance levels, IntoTheBlock utilizes a metric that shows the volume of entries around a certain price. We are currently seeing a formation of an important price level at around $30,000, with the total volume of 980,000 BTC.
Such large volume reflects the fact that traders were actively buying Bitcoin at this price, most likely betting on the reversal from $29,000.
Resistance incoming
To break out further, Bitcoin will have to absorb more than 220,000 BTC of volume in the upcoming hours, or we will see another reversal back below $30,000. No major resistances are tracked up ahead.
Currently, only 30% of traders are losing money from trading Bitcoin at $31,420, indicating that there should be no selling pressure from those who reach the threshold. profitability at the current price.
Technical levels
As for technical support and resistance levels, BTC is currently sitting at the support and moving in the consolidation channel formed since the middle of May. The first resistance on the daily chart is at $40,000.
As of press time, Bitcoin is trading at $31,400 and is attempting to breach the latest reversal point on the chart, which is at $31,800. Unfortunately, buying volume is the main issue preventing digital gold from starting a new rally to $40,000.
