As an experienced analyst with a knack for deciphering market trends and a keen eye for on-chain analysis, I find myself both excited and cautious about the current Bitcoin rally. The rapid surge in price has been nothing short of remarkable, but my years spent navigating the crypto markets have taught me that every bull run must eventually give way to a correction.


Over the past few days, the value of Bitcoin has experienced a swift surge, surpassing several previous highs and mental barriers. As a result, many traders in the market anticipate that Bitcoin could hit $100,000 in the near future.

Technical Analysis

By Edris Derakhshi (TradingRage)

The Daily Chart

Daily market performance shows a persistent upward trend after rebounding from the $70K level. The market has successfully breached both the $80K and $85K resistance points, and now trades near the significant $90K psychological barrier.

Currently, the Relative Strength Index (RSI) suggests a possible correction or pause, as it’s signaling that the market might be overbought, potentially leading to a brief adjustment or stabilization in the near future.

The 4-Hour Chart

On the 4-hour scale, the price has been holding steady near the significant $90K barrier lately.

The RSI is also showing a bearish divergence around this area, leading to a potential consolidation or correction. In case of a pullback, a drop toward the $80K area would be probable.

On the other hand, a bullish breakout could pave the way for a rally toward $100K.

On-Chain Analysis

By Edris Derakhshi (TradingRage)

Miners Position Index

Over the last several weeks, Bitcoin’s price has surged significantly. As a result, miners are now modifying their actions. Studying miner transaction statistics can thus provide valuable insights into the hidden workings of the market.

This graph displays the Miners Position Index (MPI). The MPI value is calculated by dividing the current total miner withdrawals by its rolling average over the past year of miner outflows. When the MPI value increases, it suggests significant selling activity, potentially signaling impending price drops.

According to the graph, Bitcoin miners appear to be increasingly selling their mined coins now that the market has reached a record peak. If this selling pattern persists, it could lead to a market correction or potentially a significant drop in prices.

 

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2024-11-16 17:08