Bitcoin Price Analysis: Understanding Bitcoin’s path to new heights requires a deep dive into its current support levels. Recently, Bitcoin has demonstrated remarkable strength, driven by a significant rebound from key demand zones and a notable shift in market structure. While the current momentum remains bullish, traders should approach with caution, as potential pullbacks into critical support areas could occur before prices resume their ascent.
Technical Analysis of Bitcoin’s Daily Chart
On the daily chart, Bitcoin has executed a robust rebound from a crucial order block, also known as a demand zone. This move highlights that buyers are maintaining control at this critical juncture. The rebound was further validated by a breakout above the 100-day moving average, a level that previously posed dynamic resistance.
This development signals a resurgence in bullish momentum. However, traders should remain vigilant for a potential short-term pullback to the broken moving average, near the $112K mark. Should this retest hold, Bitcoin’s broader structure would continue to support its upward trajectory toward the all-time high resistance zone.
BTC’s 4-Hour Chart Insights
On the 4-hour chart, Bitcoin has shown a definitive Change of Character (CHOCH), marking a transition from a bearish to a bullish structure. After surpassing previous swing highs, Bitcoin is currently consolidating just below the $117K resistance level.
The green decision point zone at $112K remains a crucial level to watch. A retracement into this order block would not jeopardize the bullish outlook; rather, it could serve as a healthy correction before the next upward movement. Remaining above this base sustains the path toward retesting all-time highs.
On-Chain Analysis: Miner Behavior
Examining on-chain data reveals that the transfer of Bitcoin from miner wallets to exchanges often indicates supply-side pressure. Peaks in miner-to-exchange flows have historically aligned with market tops, as increased distribution heightens selling pressure.
Currently, the 30-day moving average of miner-to-exchange flow has decreased to its lowest levels recently. This decline suggests that miners are reducing their distribution and possibly accumulating Bitcoin instead. This trend aligns with Bitcoin’s recent surge above $115K, reinforcing bullish sentiment from miners.
In summary, the combination of a technical structure shift and miner accumulation paints a positive outlook. As long as the $112K support level holds, Bitcoin appears well-positioned to maintain momentum and potentially challenge its all-time highs once again.
