Bitcoin Surpasses $30,000, Here’s Next Target If Bulls Continue (Bitcoin Price Analysis)

Bitcoin price has been rising steadily lately and has continued its bullish streak since the beginning of the year. However, the market is currently at a key resistance level and its reaction is crucial to the trend over the next few months.

Technical Analysis

From:Edris

The daily chart:

On the daily timeframe, the price has finally broken out of the tight consolidation range around $28,000 and is aggressively attacking the $30,000 resistance. This level is both a key psychological and technical area of ​​resistance and would likely shape the short-term future of the crypto market.

A breakout could lead to a bullish continuation towards the next major resistance zone, located around $38,000, while a rejection would lead to a decline towards the 50-day moving average, located around $26,000-$26,000. mark and even the $25,000 mark is support area.

In any case, the bulls can still be bullish while the price remains above the 200-day moving average, which is a key bull/bear market indicator.

Source: TradingView

The 4 hour chart:

The 4-hour chart shows that the price is struggling to break the $30,000 resistance level after recovering from the $28,000 support area a few days ago.

The RSI indicator is also showing a clear bearish divergence signal, suggesting a potential consolidation or correction in the short-term.

In that case, the $28,000 level could be relied on again to sustain the price, while the $25,000 area could also be retested in case of a deeper correction. All in all, there is no shortage of support levels and the bulls may finally be relaxing after almost a year of a cruel bearish market environment.

Source: TradingView

On-Chain Analysis

From: Edris

Short-term holders of Bitcoin SOPR

Bitcoin’s price has been steadily increasing, and many investors who bought at prices below $30,000 are now making profits. These holders are now expected to realize at least some of their profits and the SOPR metric supports this analysis.

Short-term holders’ spent output profit ratio (SOPR) is a useful on-chain metric that measures the ratio of realized profits made by holders who have bought their coins in the past six months. Values ​​above 1 indicate profit-taking, and values ​​below 1 are interpreted as investors selling their coins at a loss.

It is evident that short-term holders who have been buying their bitcoin over the past few months have been aggressively taking profits at a rate close to the all-time high of $69,000. While profit taking is a natural behavior in a bull market, if supply does not meet sufficient demand, it could lead to a bearish reversal and even a continuation of the bear market towards lower prices.

Therefore, this metric should be constantly monitored to determine whether the market is in the early stages of a new bull run or just another bull trap.

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