Bitcoin’s price experienced a significant drop yesterday following the breakdown of the $64K support level. The price is now in a key area that could determine the crypto market’s mid-term fate.
Technical Analysis
By TradingRage
The Daily Chart
On the daily chart, the price has been dropping since creating a double top pattern at the $68K resistance level. The $64K level has also been broken down to the downside, and the cryptocurrency is testing the 200-day moving average.
If it also fails to hold the price, the market is likely to go through a much deeper decline toward $52K. With the RSI also showing values below 50%, the momentum is pointing to a potential continuation of the bearish move.
The 4-Hour Chart
Looking at the 4-hour chart, things seem a bit more optimistic for Bitcoin. The price has rebounded from the $60K support level with a long wick and is currently trading around inside the range between $64K and $60K.
Meanwhile, a retest of the $60K support zone is very probable, as both the momentum and market structure are hinting at this scenario. Whether the $60K level holds or breaks will likely determine the price trend in the coming months.
On-Chain Analysis
By TradingRage
Bitcoin Short-Term Holder SOPR
With Bitcoin again failing to create a new record high, analyzing investors’ behavior can provide clues for better predictions of future price action.
This chart demonstrates the short-term holder SOPR, an on-chain metric that measures the ratio of profits/losses realized by short-term Bitcoin holders. Values above one show profit realization, while values below 1 indicate realizing losses.
As the chart displays, the STH SOPR metric has recently recovered above 1, as the market has rebounded from the $55K level.
However, following the recent drop, the STH SOPR is once again declining toward one, as the short-term holders are only realizing marginal profits. If this trend continues, the market can be overwhelmed by excess supply as holders seek to offload their coins with minimal losses.
Binance Free $600 (CryptoPotato Exclusive): Use this link to register a new account and receive $600 exclusive welcome offer on Binance (full details).
LIMITED OFFER 2024 at BYDFi Exchange: Up to $2,888 welcome reward, use this link to register and open a 100 USDT-M position for free!
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
