As a seasoned analyst with extensive experience in the crypto markets, I’ve seen my fair share of price fluctuations and trend reversals. The current situation with Bitcoin seems to be no exception.
After several weeks of declining prices, it appears that Bitcoin‘s value has hit rock bottom. However, if the price rises once more, an important threshold needs to be retaken.
Technical Analysis
By TradingRage
The Daily Chart
As a market analyst, I’ve observed that the daily chart shows the price dipping below the 200-moving average, which is around $58,000. However, this downturn was checked by the supportive $56,000 level.
The market has reached another test of the 200-day moving average from a lower position. Overcoming this hurdle could lead to challenging the $60,000 resistance point next.
The 4-Hour Chart
On the 4-hour chart, the price has bounced back above the $56,000 mark following the formation of a double bottom pattern around $54,000.
The cryptocurrency is presently advancing towards the $60K barrier and the indicated bearish trendline on the graph. Overcoming these resistance points upward would give investors reason to hope for an imminent price rebound.
On-Chain Analysis
By TradingRage
Bitcoin Short-Term Holder SOPR
When Bitcoin’s price experiences a downturn, examining the actions of investors, particularly newcomers, can provide valuable information. Utilizing the Short-Term Holder Supply Over Demand Ratio (SOPR) metric is an effective method to gain such insights.
As a researcher studying investment trends, I would describe this metric as follows: This ratio represents the amount of gains achieved by investors who have sold their cryptocurrency holdings within a six-month timeframe relative to their initial purchase price. A value greater than one implies that overall profits were realized during that period, while a value less than one suggests accumulated losses for these investors.
Based on the chart’s representation, the 30-day exponential moving average of STH-SOPR (Short-Term Holder Spent Output Proportion Ratio) has dipped below the one mark and is still descending. This downward trend suggests short-term holders are capitulating, potentially signaling the end of the correction phase.
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2024-07-10 16:06