Bitcoin’s price has recently shown signs of recovery after a month of bearish price action. With the current upward momentum in the market, there is speculation that Bitcoin might even reach a new all-time high soon. On the daily chart, the price has found support at the $56K level and has reclaimed the 200-day moving average at around $60K. However, breaking above the $65K resistance level has proven to be a challenge in the last few days. The Relative Stength Index (RSI) is indicating a bullish momentum, suggesting that Bitcoin could potentially trade above $70K again. Nevertheless, a drop below $60K could neutralize this scenario.
Analyzing the 4-hour timeframe, the market has started an impulsive rally since breaking the bearish trendline. Despite several attempts, Bitcoin has not been able to surpass the $65K level, indicating a potential correction might be on the horizon. Additionally, the RSI is showing bearish divergence and an overbought signal, which could lead to a decline towards $60K. However, the overall market structure remains bullish in the short term, providing some optimism for investors.
The buying and selling behavior of short-term Bitcoin holders play a significant role in shaping the price action in the near term. Monitoring the Bitcoin Short-Term Holder SOPR metric can offer valuable insights into the future price movements. The metric determines whether holders who have owned their coins for less than 6 months are realizing profits or losses. Currently, the 30-day exponential moving average of the Short-Term Holder SOPR is below 1, indicating that short-term holders are selling their coins at a loss. This trend is often seen during correction bottoms in a long-term bull market. If the metric rebounds above 1, it could signal a potential rally in prices and the creation of a new all-time high in the upcoming weeks.
While Bitcoin’s price has shown signs of recovery and potential for reaching new highs, it is crucial to approach the market with caution. The resistance at $65K remains a significant level to watch, and a correction towards $60K is a possibility based on current indicators. Monitoring the behavior of short-term holders can provide additional insights into future price movements. Investors should remain vigilant and adapt their strategies accordingly to navigate the volatile cryptocurrency market.
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