Bitcoin’s recent trading situation has indeed attracted widespread attention in the market. According to Glassnode’s report, the total amount of Bitcoin’s on-chain movement accounted for 3.8% of the total supply, a figure that hit a record high and even surpassed the wave of funds fleeing last year triggered by the collapse of FTX.

This shows that the Bitcoin market is undergoing a massive reshuffle and redeployment of funds. $30,000 is an important psychological support level
The most active level in this wave of trading was at $30,200, where investors appear to be choosing to trade. Glassnode’s analysis also specifically excludes transfers within exchanges to more accurately reflect real market volumes. This shows that new external funds are indeed being injected into the Bitcoin market, and it also confirms the conclusion that the stock prices of exchanges such as Binance have soared in recent days.

On the technical front, Bitcoin found immediate support near the $30,000 level, which is also an important psychological support level. A recent series of doji and gyro candles above this level suggests that bearish momentum has weakened and could turn in favor of the bulls. Moreover, on the four-hour time frame, an ascending trendline acts as resistance, indicating the possibility of a bullish breakout.

However, it’s worth noting that the 50-period exponential moving average near $30,400 could provide resistance, while the relative strength index and moving average convergence-divergence indicators also suggest a neutral stance. If Bitcoin consolidates between $30,400 and $30,000, we may not see major price movements.

If there is a bullish break above $30,400, Bitcoin could rise to levels around $30,900 or even $31,500. On the other hand, a break below the $30,000 level has the potential to push Bitcoin price towards the $29,500 level.

This wave of foreign capital entering the market is likely to be related to the slowdown in U.S. inflation and the friendliness of the U.S. Securities and Exchange Commission (SEC) in cryptocurrency regulatory policies. With the cooling of macroeconomic risks and the boost of investor confidence, the investment attractiveness of cryptocurrency assets has increased significantly. The chairman of the SEC has also made some enlightened remarks recently, and the regulatory environment for the cryptocurrency market may be improving.

But we should also note that after this wave of trading, the price of Bitcoin did not continue to rise, but fell back from $31,000 to around $30,000. This shows that the internal strength of the market is not stable, and there is a certain selling pressure. In the short term, the price of Bitcoin may fluctuate in this range.

On the whole, it is positive that the capital side of the Bitcoin market has improved, but the bull-bear game is still going on. It remains to be seen whether the transaction volume can be translated into a price increase, and the price volatility of Bitcoin may further expand in the future. As investors, we must remain rational, view all kinds of radical sentiments with caution, and wait patiently for a clear direction of the market.

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