Bitcoin Price Analysis: Key Factors for BTC to Surpass $65K
Bitcoin has recently shown signs of recovery after a period of bearish price movements. With the current upward trend, there is a possibility that the market could reach a new all-time high in the near future.
Analyzing the technical aspects, on the daily chart, Bitcoin’s price has found support at the $56K level and reclaimed the 200-day moving average around $60K, as well as the $60K level itself. However, the market is facing resistance at the $65K level, failing to break through for the past three days. Despite this, the Relative Strength Index (RSI) indicates a bullish momentum, suggesting a potential move above $70K, unless the price drops below $60K.
Looking at the 4-hour chart, Bitcoin has initiated an upward rally after breaking a bearish trendline. Yet, attempts to surpass the $65K level have been unsuccessful, and a correction could be imminent. Although the Relative Strength Index signals a bearish divergence and overbought conditions, the overall market structure remains bullish in the short term.
In terms of on-chain analysis, the behavior of short-term Bitcoin holders plays a crucial role in shaping price movements. Monitoring the Bitcoin Short-Term Holder SOPR metric can offer insights into future price actions. This metric assesses whether holders who have owned their coins for less than 6 months are realizing profits or losses. A value above 1 indicates profit-taking, while a value below 1 signifies losses.
Currently, the 30-day exponential moving average of the Short-Term Holder SOPR is below 1, indicating that short-term holders are selling at a loss. This pattern often signals correction bottoms during a long-term bull market. A potential recovery of the metric above 1 could lead to a price surge and possibly set a new record high in the coming weeks.
It is essential to monitor these technical and on-chain indicators to gauge Bitcoin’s price movements accurately and make informed decisions in the volatile cryptocurrency market.
