Reported on CryptoPotato, Bitcoin (BTC) is displaying a downward trend, struggling to overcome the resistance level at $108K. With the crypto asset falling under the much-anticipated $100,000 milestone, investors are bracing for a possible deeper market correction.
Technical Analysis by Edris Derakhshi (TradingRage)
From the daily chart, it’s clear that BTC’s price has experienced a consolidation period under the $108K level, and it’s currently breaking the $100K support, heading downward. If this support fails, we could see Bitcoin plummeting to the $92K level in the upcoming weeks. The Relative Strength Index (RSI) being under 50% supports this bearish projection.
On a more optimistic note, the 4-hour chart exhibits promising signs for a potential rally in the next few months. The asset is seen following a considerable bullish flag pattern. Right now, the price is approaching the pattern’s lower boundary. If it holds, a market surge and a break of the pattern upward could be in sight, marking a bullish continuation. But if the lower trendline breaks, the market could swiftly turn sour, sending Bitcoin tumbling down to $92K or even lower.
On-Chain Analysis by Edris Derakhshi (TradingRage)
The Long-Term Holder SOPR metric shows that Bitcoin’s price has been hovering around peak values in recent months, likely due to substantial profit-taking among investors. This metric represents the ratio of profits taken by investors who have held their BTC for over 6 months.
As indicated by this metric’s 30-day moving average, these long-term holders have been actively selling their BTC, leading to the market’s inability to rally further. However, these profit-realization statistics are still lower than those seen last summer when the market was trading at lower levels. This suggests that if selling pressure decreases, BTC has a high chance of climbing even higher.
