Short-term consolidation near $43,000 or signs of bearish momentum? (Bitcoin price analysis)
Bitcoin’s price surge has stalled after a steady upward trend over the past few months. Investors and traders cannot be sure if the trend will reverse or if they are only experiencing a short-term consolidation.
technical analysis
Posted by TradingRage
Bitcoin Price Analysis: Daily Chart
On the daily chart, the price has been making higher highs and lower lows since rebounding from the $20,000 level last March. Several resistance levels were broken to the upside. Meanwhile, BTC is struggling to reach the critical $48K level and is showing range-bound movement.
It is also trending well above the 200-day moving average, which is located near $32,000. Therefore, it seems highly likely that the 200-day moving average will catch up through sideways movement or correction.
4 hour chart
The 4-hour chart shows recent price action more clearly. The market has formed two short-term resistance levels at the $45,000 and $43,000 prices and is trading two levels below each.
If it fails to quickly recover above the $43,000 level, we can expect it to fall towards the $40,000 level in the near term. If the Relative Strength Index shows a value lower than 50%, the momentum favors a bearish move and a downside is more likely.
Bitcoin on-chain analysis
Posted by TradingRage
Bitcoin Short Holder SOPR (SMA 30)
Bitcoin price is on the rise, recovering from the bear market of the past few months. But market participants are wondering whether a correction is needed. Analyzing investor behavior can help you answer this question.
This chart represents the Short Holder SOPR (Spent Output Profit Ratio). It measures the percentage of profit (or loss) that a short-term investor (holding period of less than 155 days) realizes when selling Bitcoin. Values above 1 represent total profits realized by short-term holders, while values below 1 are associated with realized losses.
Looking at the chart, it is clear that the recent price rally has brought STH SOPR back above 1. This shows that these holders are consistently realizing profits. While this can be a positive sign, it can also be considered a bearish signal because oversupply could lead to a reversal of the trend or at least a correction.
Binance Free $100 (Exclusive): Use this link to register and receive $100 free and 10% off fees on your first month of Binance Futures. (hatchet).
Disclaimer: Information found on CryptoPotato is that of the authors cited. It does not represent CryptoPotato’s opinion on whether to buy, sell or hold any investment. We recommend that you do your own research before making any investment decisions. Use of the information provided is at your own risk. Please see our disclaimers for more details.
Cryptocurrency charts from TradingView.
Source: https://cryptopotato.com/short-term-consolidation-or-signs-of-bearish-momentum-at-43k-bitcoin-price-analytic/
