Has Bitcoin’s Bull Market Resumed Or Is The Push To $65,000 A Hoax? (BTC Price Analysis)

After a prolonged period of sideways consolidation, Bitcoin witnessed a downtrend, breaking below the important support zone of $59,000.

However, a notable bullish rebound near the 100-day MA suggests the potential for a resurgence of buying pressure.

Technical Analysis

By Shayan

The daily chart

After a thorough review of the daily chart, it becomes clear that Bitcoin experienced a prolonged phase of sideways consolidation within the pivotal price range of $59,000 to $72,000.

The recent price action saw a decline, breaching the lower bound of this range and the 100-day moving average. This bearish move led to the liquidation of many long positions, leading to a cooling period in the perpetual markets.

However, Bitcoin found major support in a crucial area, the Fibonacci retracement level of 0.618 ($59,395), aligned with the vital 100-day moving average at $59,000. This region led to a bullish reversal, raising expectations of a renewed positive trend in the medium term.

However, a sudden breach below the critical $59,000 level could trigger another notable downside move towards the $56,000 threshold.

Source: TradingView The 4-hour chart

Analysis of the 4-hour chart reveals increased selling pressure after Bitcoin failed to break the $68,000 threshold. This led to a notable downtrend, breaking below the lower trend line of the wedge around $59,000.

Following this breach, numerous long positions were liquidated, leading to a significant decline and a quick test of the $56,000 level. However, the price quickly recovered, pulling back above the lower boundary of the wedge and the $59,000 support region.

BTC is currently on the verge of retrieving its previous daily swing of $65,000. If successful, the uptrend towards $68,000 is likely to continue in the short term.

Source: TradingView chain analysis

By Shayan

The attached chart shows the realized price metric of Bitcoin Short-Term Holder (STH), a crucial indicator that is often used to identify support and resistance regions on the chart.

This metric calculates the short-term average realized price, which includes transactions that occur in less than 155 days. It is derived by dividing the realized cap by the total coin supply, providing a weighted average price based on what short-term holders paid for their coins.

During the bull run, this metric has consistently served as robust support for the price on several occasions. After the recent drop in Bitcoin, the price reached this pivotal level and found support, triggering a bullish bounce. However, it is imperative to note that if the price breaks below this critical dynamic support, the market could experience a significant drop.

However, the overall trend remains bullish as long as the price remains above the realized price of the short-term participants. This metric remains a key factor in assessing market dynamics and anticipating possible short-term price movements.

Source: CryptoQuant SPECIAL OFFER (Sponsored) Binance Free $600 (CryptoPotato Exclusive): Use this link to register a new account and receive an exclusive welcome offer of $600 to Binance (full details).

LIMITED OFFER 2024 for CryptoPotato readers on Bybit – Use this link to register and open a $500 BTC-USDT position on Bybit Exchange for free!

Disclaimer: The information found on CryptoPotato is that of the quoted writers. It does not represent CryptoPotato’s views on whether to buy, sell or hold any investment. We recommend that you do your own research before making any investment decisions. Use the information provided at your own risk. See disclaimer for details.

TradingView Cryptocurrency Charts.