The price of Bitcoin has been consolidating since the beginning of March and has failed to continue its upward trend. Nevertheless, the cryptocurrency could soon get back on track and reach a new all-time high.
Bitcoin Price Analysis: Technical Data
By TradingRage
The daily chart
On the daily chart, Bitcoin price has been consolidating between the $60,000 and $70,000 levels over the past few weeks. The recent rejection from the $70,000 zone pushed it towards the $60,000 support level.
Nevertheless, the level has held and a recovery has begun. The market is now expected to retest the $68,000 level – a key resistance. On the other hand, if something goes wrong and the price falls below $60,000, the $48,000-$52,000 area would be a likely target in the coming weeks.
Source: TradingView
The 4 hour chart
Looking at the 4-hour time frame, it is evident that BTC price has formed a descending channel above the $60,000 zone. A breakout of the channel would be a classic bullish reversal signal and the market could finally exit the correction phase.
The Relative Strength Index also shows values above 50%, indicating that the momentum has once again shifted in favor of buyers and a bullish scenario is slightly more likely.
Source: TradingView
On-chain analysis
By TradingRage
Bitcoin short term holder SOPR
Bitcoin's consolidation in recent weeks has caused panic among many investors. Some believe the bull market is over and BTC is peaking, while other holders see the recent correction as a buying opportunity.
This chart shows the issued production profit ratio (SOPR) of short-term Bitcoin holders. The metric measures the ratio of profits made by investors who have held their coins for less than 155 days.
As the chart shows, the STH SOPR recently reached a record high and is showing significantly higher values than during the previous all-time high. This significant profit realization likely took its toll on the market as subsequent selling pressure prevented prices from rising higher.
The STH SOPR has even fallen below 1 in the past few days, suggesting that short-term holders are now realizing losses. Therefore, the market may need more demand to meet the current excessive supply and bounce back to the upside.
Source: CryptoQuant
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Cryptocurrency charts from TradingView.
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