Bitcoin has failed to sustain its rally above the $100K level and has been correcting over the last week.
Yet, a bullish continuation can materialize soon.
Technical Analysis
By Edris Derakhshi (TradingRage)
The Daily Chart
On the daily chart, the asset dropped below the $100K level last week and has failed to climb back above it since. While the $90K support zone has held the market, preventing it from dropping lower, the price has failed to break above the $100K level yet again and is getting rejected to the downside.
This could result in a deeper continuation below the $90K and toward the $80K area in the coming weeks if the price fails to break back above $100K.
The 4-Hour Chart
Looking at the 4-hour timeframe, things look slightly more tricky for Bitcoin. The price has recently broken the ascending channel pattern to the downside, which can be a reversal signal. The lower boundary of the pattern has also been retested twice alongside the $100K resistance level.
Yet, both levels have held and pushed the asset lower, which could lead to a drop toward the $90K level and even lower in the short term.
On-Chain Analysis
By Edris Derakhshi (TradingRage)
Long-Term Holder SOPR
Not everything can be figured out using technical and price analysis. For a better view of the underlying dynamics of the Bitcoin network, it is beneficial to analyze on-chain metrics.
This chart presents the long-term holder SOPR metric, which measures the ratio of profit realization by investors who have held their coins for over 6 months. As the chart suggests, the realized profit is relatively high, but it has yet to reach the values previously seen when the market was consolidating below the $70K level. This is especially interesting, as BTC is now trading around $100K.
As a result, it could be interpreted that long-term holders’ selling pressure is still insufficient to overwhelm the market, and the price could still rally higher in the coming weeks.
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