As a researcher with a background in cryptocurrency and financial markets, I’ve been closely monitoring the price action of Bitcoin (BTC) over the past few weeks. The recent surge above $70,000 was an exciting development for many market participants, including myself. However, as we speak, the asset has retraced below that level, leaving us wondering how much further it will rally.
The price of Bitcoin is nearly reaching a new record high, having surpassed $70,000 for the first time this week. Market players are left pondering just how high Bitcoin’s price surge will continue.
Yet, there is still one obstacle remaining as the asset has retraced below that level.
Technical Analysis
By TradingRage
The Daily Chart
The daily Bitcoin chart shows an uptrend for BTC following its bounce back from the $60,000 support. However, it encountered resistance at the upper limit of the prominent downward trendline and was subsequently turned down. At present, the cryptocurrency’s price is finding support at the $69,000 mark.
Should the trend continue, Bitcoin has the potential to surge back up towards the upper limit of its channel and even challenge the $75,000 resistance mark. Nevertheless, the cryptocurrency’s behavior remains volatile and unpredictable at this juncture, with occasional dips below current levels.
The 4-Hour Chart
As a researcher studying Bitcoin’s price trends, I’ve found that observing its behavior over a 4-hour timeframe provides a clearer perspective on recent price action. Lately, Bitcoin has been forming lower highs and lows since getting rejected from the upper boundary of a larger channel. However, an encouraging development is its current break above the bearish trendline it established more recently.
With the RSI also rising above the 50% threshold, the momentum seems to be shifting in favor of the buyers once more. Therefore, if the $69K support level holds, it would only be a matter of time before the price runs at the $75K area and creates a new record high.
Sentiment Analysis
By TradingRage
Bitcoin Short-Term Holder SOPR
Bitcoins’ price has bounced back after a two-month downturn marked by corrections and consolidation. However, data indicates that numerous market players have recently cashed out, transferring their bitcoins to fresh buyers.
The chart illustrates the Short-Term Holder SOPR (MVRV Ratio) for Bitcoin, which reveals the ratio of realized profits or losses. A value greater than one signifies collective profit-taking, whereas figures less than one suggest selling at a loss.
Based on the graph’s representation, the SOPS metric has experienced a significant decline in the latest market correction, returning to a value of 1. This signifies that numerous short-term investors have cashed out and reaped gains, offloading their coins to novice market participants.
Meanwhile, with the metric rebounding, the short-term holders are again taking profits as the price rallies. Yet, as long as there is enough demand, the price can continue higher.
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2024-05-25 18:04