This article has been republished with permission from Binance News.
According to CryptoPotato, Bitcoin has experienced bearish price action over the last few weeks after being rejected from the critical $30K resistance level. However, there is still hope for recovery. On the daily chart, the price has dropped significantly from the $30K resistance zone, breaking below both the 50-day and 200-day moving averages. The $25K support level is currently holding it. The 200-day moving average, located around the $28K mark, has rejected the price, pushing it towards the $25K level once more. A bearish crossover between the 50-day and 200-day moving averages seems highly probable.
On the 4-hour chart, the market has recently been rejected from the $27,500 short-term resistance level and has been declining towards the $25K support area. The RSI indicator is showing values below 50%, emphasizing the current bearish momentum in price. If the $25K level breaks down, the situation could worsen quickly.
Analyzing Bitcoin’s open interest, which measures the number of open perpetual futures contracts on all centralized exchanges, can provide insight into the futures market sentiment. Higher values usually indicate increased volatility, while lower values lead to more stable price action. Following the recent price decline, the open interest metric has decreased significantly. While there is still the possibility for more bearish price action, the volatility should be considerably lower, and a more gradual uptrend or downtrend is probable.