As an experienced analyst, I believe the recent drop in Bitcoin’s price is a significant development that warrants close attention. The daily chart shows that BTC has been trending down since early June and is approaching the crucial $60K support level. A breakdown below this level could lead to a retest of the 200-day moving average at around $58K.
As an analyst, I’ve observed that Bitcoin‘s value has been decreasing significantly in recent days following its inability to maintain prices above the $70,000 mark. We are now nearing a crucial fundamental threshold.
Bitcoin Price Analysis: Technicals
By TradingRage
The Daily Chart
Over the past few days, Bitcoin’s price has shown a declining trend, starting in early June. This downward movement came about after the cryptocurrency hit a roadblock at the $72,000 mark and was unable to hold that level. Now, the price is edging closer to the crucial support zone of $60,000.
As an analyst, I would interpret the current market situation as follows: The 200-day moving average is hovering around $58,000. If the price falls below $60,000, we could witness a retest of this important support level. Ultimately, the mid-term trend will be determined by how the market responds to these key support elements.
The 4-Hour Chart
On the 4-hour chart, the large falling wedge pattern has given way to downward pressure, causing the price to swiftly approach the $60K support level. Additionally, the Relative Strength Index (RSI) has dropped significantly and currently indicates readings below the 30% mark.
Based on the analysis of the 4-hour chart, Bitcoin (BTC) appears to be undervalued at its current price and may experience a brief rebound or period of stability around the $60,000 mark.
Yet, if the market breaks lower, the $58K support zone would be the next potential target.
On-Chain Analysis
By TradingRage
Bitcoin Short-Term Holder SOPR
As an analyst, I’ve noticed that Bitcoin’s price decline has caused many investors to experience a shrinking of their potential profits that they had not yet realized. Conversely, some savvy traders managed to sell their Bitcoins at a profit before the market took a downturn, thereby securing their gains.
As a crypto investor, I’d interpret this chart in my own words as follows: This graph showcases the Bitcoin Short-Term Holder Supply-Demand Ratio (SOPR), which illustrates the average profit or loss for investors who have held their Bitcoins for less than a year. When the SOPR is greater than one, it signifies that these investors are currently in the green, selling their coins at a profit. Conversely, if the SOPR falls below one, it indicates that short-term holders are experiencing losses and may be selling at a price lower than what they originally paid.
As a financial analyst, I’ve observed that both the Short-Term Holder (STH) Spent Output Profit Ratio (SOPR) and Bitcoin (BTC) price are on a downward trend. This implies that STHs are likely incurring losses, as the market value of their holdings is dropping below their initial purchase prices. If the BTC price falls further, these losses will materialize when the market dips beneath the $60,000 threshold.
During a bull market, price drops at the bottom can still take place. If we believe the bull market is not finished, then a significant price drop may be imminent.
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2024-06-24 13:42