Is BTC heading towards $70,000 or $60,000 next?

The price of Bitcoin is currently at a critical level and its reaction will likely determine the mid-term trend of the entire crypto market.

Technical Analysis

By Edris Derakhshi (TradingRage)

The daily chart

On the daily chart, the asset has been recovering since retrieving the $52,000 support level and breaking the $56,000 and $60,000 levels on the upside with momentum. However, the market has finally reached the 200-day moving average, which coincides with the key resistance level at $64,000.

A bullish breakout could lead to a further rally to higher prices. Meanwhile, if the cryptocurrency rejects to the downside, the $60,000 level would likely support a push back up.

The 4 hour chart

The 4-hour chart demonstrates a complicated situation for BTC price as it is currently consolidating in a small descending channel at the $64,000 level.

If it breaks to the downside, this becomes a classic bearish investment price action pattern. Meanwhile, if the asset breaks, the pattern would fail and a quick rally towards the $70,000 area would be expected. With the RSI also showing values ​​above 50%, the momentum still favors a bullish continuation.

Chain analysis

By Edris Derakhshi (TradingRage)

Short-term holder of Bitcoin SOPR

During the recent Bitcoin price consolidation and gradual correction, many short-term holders have panicked and sold their holdings, even non-profits. This chart shows the Bitcoin Short-Term Holder SOPR, which measures the ratio of gains/losses realized by short-term investors.

As the chart suggests, the STH SOPR hit a new high when the price first reached $70,000, but has declined rapidly over the past few months. Short-term holders have even seen losses since July as the metric has dipped below one. However, with the recent rally in prices, these investors are turning a profit again.

While this is natural behavior in bull markets, if the selling pressure resulting from this profit-taking is not met by sufficient demand, the market could become overwhelmed and move lower again.

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