BTC looks poised to challenge $100,000 again after bottoming out at $91,000

Bitcoin has yet to continue its historic run above the $100,000 level, but there is some optimism to be gleaned from the recent price action.

Technical Analysis

By Edris Derakhshi (TradingRage)

The daily chart

On the daily chart, the asset has been struggling to climb back above the $100,000 resistance level after falling below it in early December. However, the price has supported several times from the $92,000 support level, which could indicate that the market is making a bottom to rally towards a new high above the $100,000 resistance level. In this case, the $110,000 mark could be the next potential target for the largest cryptocurrency.

The 4 hour chart

The 4-hour chart clearly shows BTC’s price action over the past few weeks. The market has broken an ascending channel to the downside and retested the lower boundary of the pattern a couple of times. However, the $92,000 support zone has prevented a deeper decline.

With the RSi rising above the 50% threshold again, the market momentum can be considered bullish and the price could soon break the $100,000 resistance level to the upside and start a new recovery higher.

Chain analysis

By Edris Derakhshi (TradingRage)

Short term holder SOPR

While Bitcoin’s price has been consolidating around $100,000, investors have debated whether the bull run is over. This uncertainty can be seen by looking at the behavior of the headlines over the last week.

This chart presents the short-term holder SOPR metric, which measures the proportion of profits earned by short-term holders. As the chart shows, the STH SOPR has been in decline after a rapid rise during the market’s latest rally. This indicates that there has been a wave of profits recently as Bitcoin reached the key $100,000 level.

The resulting selling pressure from short-term holders has likely been one of the main reasons why Bitcoin was unable to continue its rally. However, with the price still holding above $90,000, it is clear that there is still enough demand to sustain the market and even push it higher in the coming weeks.

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