Bitcoin’s price has recovered from a sudden drop following a rejection from the $48K level. Meanwhile, the cryptocurrency has yet to reach a higher high.
Technical Analysis
By TradingRage
The Daily Chart
On the daily timeframe, the price has been rising over the past few weeks after rebounding from the $40K support level. The market is currently rising toward the $48K resistance level once more. The Relative Strength Index is also showing values above the 50% level, indicating that the momentum is in favor of a further bullish continuation.
In case BTC’s price breaks above the $48K level, the market will likely head for a new all-time high in the coming months.
The 4-Hour Chart
Looking at the 4-hour chart, the recent action becomes more clear. The price is currently testing the $45K resistance level, but the momentum is seemingly fading.
The Relative Strength Index is also showing a clear overbought signal. Therefore, it is probable that consolidation or a correction will occur in the short term before the market can continue toward making a higher high.
On-Chain Analysis
By TradingRage
Bitcoin Short-Term Holders Spent Output Profit Ratio (SMA 30)
While Bitcoin’s price has been recovering from the recent drop, some network fundamentals are cooling down. This can be interpreted as a bullish signal, as supply is seemingly shrinking.
This chart demonstrates the Bitcoin short-term holder spent output profit ratio (SOPR). The SOPR metric is a ratio of spent outputs (alive more than 1 hour and less than 155 days) in profit at the time of the window. Values over ‘1’ indicate more short-term investors are selling at a profit. On the contrary, values below ‘1’ indicate that more short-term investors are selling at a loss.
While the SOPR has recently displayed very high values, the metric is currently declining. This points to the fact that many short-term investors have sold their coins, and the selling pressure is decreasing. In case this continues, a sustainable uptrend can be expected in the short term.
Binance Free $100 (Exclusive): Use this link to register and receive $100 free and 10% off fees on Binance Futures first month (terms).
Disclaimer: Information found on CryptoPotato is those of writers quoted. It does not represent the opinions of CryptoPotato on whether to buy, sell, or hold any investments. You are advised to conduct your own research before making any investment decisions. Use provided information at your own risk. See Disclaimer for more information.
Cryptocurrency charts by TradingView.
Credit: Source link
