Bit-coin News Report:
The price of Ripple has been declining in the past few weeks as it failed to sustain its upward momentum. However, the past few days have been quite volatile, leading to price fluctuations and questioning this trend.
Bitcoin Price Analysis: Technical Analysis
Technical Analysis
By Edris Derakhshi (TradingRage)
Daily Chart
The daily chart shows that since the rebound from the support level of $52,000 in September, the price has been making higher highs and higher lows. The 200-day moving average, located around $64,000, has also been breached.
However, the market has failed to successfully break through the key resistance level of $69,000 and is currently undergoing a downward adjustment. As a result, the 200-day moving average may be retested in the coming days. Nevertheless, if BTC’s trading price exceeds $60,000, this trend may be considered bullish.
Source: TradingView
4-hour Chart
On the 4-hour chart, the price has broken out of the ascending wedge pattern and declined, while being rejected by the resistance zone around $69,000. The RSI has also dropped below 50% as the 4-hour momentum turns bearish.
However, although $64,000 seems like a possible target, the downside may not materialize as the recovery and continuation could start sooner. If true, this behavior will confirm that Bitcoin is beginning a strong rebound, and setting new all-time highs is only a matter of time.
Source: TradingView
On-chain Analysis
By Edris Derakhshi (TradingRage)
Bitcoin Exchange Reserves
As BTC approaches its all-time high, market participants are curious whether large investors are taking profits or still accumulating. Based on this data, the latter seems to be correct.
This chart shows the exchange reserve indicator, which measures the amount of BTC held in exchange wallets. It is widely considered as a proxy for supply since coins in exchanges can be quickly sold, thus exerting downward pressure on prices.
As shown in the chart, BTC exchange reserves have recently declined sharply, continuing their long-term decline. This clearly indicates an accumulation phase, which could soon lead to supply shock and price surge, especially in a situation of increasing demand.
Source: CryptoQuant
