Bitcoin’s price has been struggling in recent weeks, failing to reach a new all-time high. As the asset approaches a key support level, traders and investors are closely watching the charts to see where the price might go next.
On the daily chart, Bitcoin is approaching the 200-day moving average, which is currently around $57K. However, before reaching this level, the $60K support level must be decisively broken to the downside. Additionally, the RSI indicator is approaching the oversold region, potentially signaling a bullish reversal in the near future.
The 4-hour chart provides a clearer picture of the recent price action. After dropping below $65K, Bitcoin crashed under $60K before quickly recovering. This fake breakout below the $60K support zone led to many long liquidations and could indicate a potential reversal higher. The key factor now is whether Bitcoin can hold above the $60K and $57K support levels.
On-chain analysis reveals some concerning trends for Bitcoin investors. The Bitcoin Long-Term Holder SOPR metric shows that long-term investors who have held their coins for over six months are realizing profits at a rate higher than the $69K all-time high. This profit realization behavior, if it continues, could lead to increased selling pressure and potentially lower prices in the future.
While profit-taking is a natural part of any bull market, the magnitude of the selling pressure from long-term holders could signal trouble for Bitcoin’s price in the mid-term. If this trend persists, it could potentially end the current bull market and lead to further declines in the price of the cryptocurrency.
In conclusion, Bitcoin’s price is at a critical juncture as it approaches key support levels and faces selling pressure from long-term holders. Traders and investors must closely monitor the charts and on-chain metrics to gauge the direction of the market and make informed decisions about their holdings. The coming days will be crucial in determining whether Bitcoin can maintain its bullish momentum or if a deeper correction is in store.
