Bitcoin prices are on the verge of reaching an all-time high after a significant increase over the past few days. However, this asset initially faced some resistance and has yet to surpass the peak from March.
Technical Analysis
By
Edrees Delaheshi (TradingRage)
Daily Chart
On the daily chart, the asset has begun to rebound since bouncing off the support level of $52,000. Over the past few weeks, it has broken through the 200-day moving average, which is near the $64,000 level and the resistance zone around $69,000. Currently, BTC is testing the resistance zone of $74,000, which is also its record peak, and it is highly likely to break upward, potentially leading to a long-term rebound.
4-Hour Chart
From the 4-hour timeframe, the situation is much clearer, as BTC prices have experienced a period of accumulation during the recent consolidation below $68,000. This has led to a significant rise to the $74,000 price level. However, the RSI indicates a concerning pattern, showing clear overbought signals that could lead to short-term consolidation or a pullback. Nevertheless, considering the overall market structure, Bitcoin is likely to experience explosive growth in the coming months.
On-Chain Analysis
By
Edrees Delaheshi (TradingRage)
Bitcoin Short-Term Holder SOPR
While the Bitcoin price chart seems poised to reach new highs, the profit-taking rate does not reflect this situation. The chart shows the Short-Term Holder SOPR indicator, which measures the profit ratio realized by investors. Values above 1 indicate profit realization, while values below 1 indicate total losses realized. As shown, while short-term holders are realizing profits, the STH SOPR is nowhere near the level it last traded around $7400. This is a positive signal, suggesting that the market may not yet be overwhelmed by supply and still has potential for continued upward movement.
