Bitcoin Price Analysis: BTC Not Quite Ready to Challenge $60K, Watch This Level First


Following weeks of a downtrend, Bitcoin’s price has seemingly found a bottom. Yet, if the price recovers, one key level should still be reclaimed.

Technical Analysis

By TradingRage

The Daily Chart

On the daily chart, the price has been supported by the $56K support level after breaking below the 200-day moving average, located around the $58K mark.

Yet, the market is once again testing the 200-day moving average from below. If it is successful in rising above it, the $60K resistance level will be the next key zone to penetrate.

Source: TradingView

The 4-Hour Chart

Looking at the 4-hour chart, the price has recovered above the $56K support level after creating a double bottom pattern around $54K.

The cryptocurrency is currently running toward the $60K resistance level, and the bearish trendline demonstrated on the chart. If the market can break these resistance elements to the upside, market participants can be optimistic that a price recovery could materialize soon.

btc_price_chart_1007242
Source: TradingView

On-Chain Analysis

By TradingRage

Bitcoin Short-Term Holder SOPR

With Bitcoin’s price going through a correction, analyzing the behavior of investors, especially those who have recently entered the market, can yield beneficial insight. The Short-Term Holder SOPR metric would be a handy tool to achieve this end.

It measures the ratio of profits realized by investors holding their coins for less than six months. Values above 1 indicate profit realization, while readings lower than one show losses being realized on aggregate.

As the chart demonstrates, the 30-day exponential moving average of STH-SOPR has dropped below one and continues to decline. This shows capitulation by short-term holders, which could be one of the initial signs pointing to the end of the correction phase.

btc_sopr_chart_1007241
Source: CryptoQuant
SPECIAL OFFER (Sponsored)

Binance Free $600 (CryptoPotato Exclusive): Use this link to register a new account and receive $600 exclusive welcome offer on Binance (full details).

LIMITED OFFER 2024 at BYDFi Exchange: Up to $2,888 welcome reward, use this link to register and open a 100 USDT-M position for free!

Disclaimer: Information found on CryptoPotato is those of writers quoted. It does not represent the opinions of CryptoPotato on whether to buy, sell, or hold any investments. You are advised to conduct your own research before making any investment decisions. Use provided information at your own risk. See Disclaimer for more information.

Cryptocurrency charts by TradingView.



Source link

About The Author

Scroll to Top