Bitcoin price has finally broken through the $45,000 mark on its way to a new all-time high. While the technical chart looks strong, there are some worrying signals coming from on-chain metrics.
Technical analysis
By TradingRage
The daily chart
On the daily time frame, the price has been clearly bullish over the past few months. After breaking above the $40,000 mark, the market went through a consolidation phase. However, the $40,000 area acted as an impressive support level and pushed the price even higher.
BTC is approaching the $48,000 resistance level, which represents the next major hurdle. If there is a break to the upside, the probability of reaching a new all-time high in 2024 increases significantly.
Source: TradingView
The 4 hour chart
The 4-hour chart provides a clearer picture of recent developments. The price has formed a symmetrical triangle after crossing the $40,000 mark.
However, it recently broke above the triangle with amazing momentum. From the perspective of classic price action, the cryptocurrency seems poised to reach $48,000 soon. However, the Relative Strength Index is showing a cautionary signal as it has entered the overbought territory within the 4-hour time frame.
Therefore, the market could consolidate or even pullback in the short term before moving further towards the $48,000 zone.
Source: TradingView
On-chain analysis
By TradingRage
Bitcoin miner reserve
Although the price of Bitcoin has risen sharply in recent months, not all market participants are too optimistic about the future. The most important cohort in the Bitcoin network, the miners, are exhibiting worrying behavior.
This chart shows the Miner Reserves metric, which measures the amount of BTC stored in miners' wallets. An increase in miner reserves indicates accumulation by miners, while a decrease indicates distribution by them.
It is evident that miner reserves have been declining rapidly in recent months amid significant price increases. This suggests that miners are using the newly introduced demand as an exit opportunity.
They regularly sell their inventory to buyers. The resulting selling pressure could lead to a bearish price reversal if demand declines in the near term.
Source: CryptoQuant
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Cryptocurrency charts from TradingView.
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