Bitcoin’s price has shown signs of recovery after a period of bearish price action. The market has found support at the $56K level, and the 200-day moving average around $60K has been reclaimed. Despite this positive momentum, the price is struggling to break above the $65K resistance level, facing rejection in the last three days. However, with the Relative Strength Index indicating bullish momentum, there is a possibility of BTC reaching above $70K soon. The scenario could change if the price drops below $60K.
Short-term holders of Bitcoin play a crucial role in shaping the price action in the near term. Analyzing the Bitcoin Short-Term Holder SOPR metric can provide valuable insights into predicting price movements in the upcoming weeks. The SOPR metric assesses whether holders who have owned their coins for less than six months are realizing profits or losses. A value above 1 suggests selling at a profit, while a value below 1 indicates loss realization. Currently, the 30-day exponential moving average of the STH SOPR is below 1, signaling that short-term holders are selling at a loss. This pattern typically indicates correction bottoms during a long-term bull market. If the metric recovers above 1, it is likely that the price will surge higher and potentially reach a new all-time high in the following weeks.
On the daily chart, Bitcoin has exhibited signs of bullish momentum, reclaiming key support levels and the 200-day moving average. However, the resistance at $65K has been a challenge, leading to potential price consolidation or a pullback. The 4-hour timeframe shows an impulsive rally after breaking the bearish trendline, but struggles to surpass $65K. The Relative Strength Index points towards a bearish divergence and overbought conditions, suggesting a possible dip towards $60K. Despite short-term fluctuations, the overall market structure remains bullish, indicating the potential for further upside if key levels are breached.
Bitcoin’s recent price recovery signals a potential move towards a new all-time high. However, challenges at resistance levels and short-term holder behavior may impact price movements in the near future. Traders and investors should monitor key levels and market indicators to make informed decisions in this volatile environment.
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