Ever since the Bitcoin price has dropped from the yearly highs of around $31,000, the crypto markets have consolidated fairly. This has raised speculation about negative price action that may drive the price lower soon.
Meanwhile, after the recent retest above $30,000 failed to hold, now could be the time to keep an eye on $28,800, which appears to be one of the major support levels. If bulls are successful in holding these areas, then a decent bounce to $29,800 may be fairly possible.
However, from a wider perspective, the current price action suggests, Bitcoin winter may outperform summer soon and drag the price lower.
After the recent test of the 200-day MA, the BTC price reclaimed its levels within the rising parallel channel. However, the current trade setup signals the possibility of the price revisiting the support levels, which were initially formed at around $26,000. Here a notable rebound may be anticipated that may raise the levels back above $30,000 and also try to reach the crucial resistance at $32,000.
Besides, in the larger time frame, the Bitcoin price appears to be extremely bullish, as the price has just flashed a bullish signal.
The above-mentioned chart displays the Bitcoin Extreme Oscillators, which are used to identify the extremes of the BTC price movement. The oscillator considers the MVRV ratio, which indicates unrealized profit or loss, the aSOPR (30D EMA), which indicates realized profit or loss multiples, the Puell multiple, which indicates the miner’s revenue, and the Reserve Risk multiple, which indicates the degree of HODLing and takes the 7D-EMA of the binary result of the four.
Whenever the result is negative, as seen in the above chart, it signals a large deviation towards the south, indicating the bear market. Meanwhile, the indicator is slowly rising towards the positive range, which signals large deviations towards the north, indicating typical bull market conditions. Previously, the price surged by more than 2800%, 560%, 6400%, 99%, and 487%, when the indicator rose within the positive range.
Therefore, now that the Bitcoin Extreme Oscillator is turning positive, a giant price action, triggering a massive bull run may be expected.
Source: https://coinpedia.org/price-analysis/bitcoin-winter-incoming-should-you-be-worried-about-the-btc-price-plunge/