This Support Level Will Determine Whether BTC Rises To A New ATH Or Falls To $60,000 – Bitcoin Price Analysis

Bitcoin price has yet to break out of the great descending channel and move towards a new record high, but it is very likely that there will be another rally.

Still, BTC failed to break the psychological $70,000 line earlier this week decisively.

Technical Analysis

By TradingRage

The daily chart

On the daily chart, the asset has recently been recovering from a bounce from the lower boundary of the descending channel and the $60,000 support level.

However, the higher trend line of the channel has rejected the cryptocurrency and the $68,000 support zone is currently being tested. If the level holds, it will only be a matter of time before bitcoin creates a new all-time high. On the other hand, a breakdown could trigger a correction towards the $60,000 support level again.

The 4 hour chart

Looking at the 4-hour chart, the price is the coin hovering around the $68,000 level, unable to sustain its upward momentum. The relative strength index is also hovering around the 50% threshold, indicating that the market is still undecided.

Meanwhile, the first target for a deeper correction could be the median line of the grand channel, followed by the $60,000 support zone. However, a drop below these levels could be catastrophic as the market could fall aggressively due to a liquidation cascade.

Chain analysis

By TradingRage

Bitcoin Exchange Input: Spent Output Age Bands

Although the price of bitcoin seems to be losing its bullish momentum again, analyzing the behavior of investors could be very beneficial. This graph shows the age bands of spent production of exchange flows. It simply shows the fraction of deposits made by investors who have held their coins for a given period of time.

Given the 6+ month age bracket, considered long-term investors, there is no indication of aggressive selling pressure. In fact, long-term holders only profit as they would in any slow and steady uptrend.

Interestingly, the worn-out age range for long-term holders has declined even more than that of lower prices, indicating that long-term holders are expecting higher prices to offload their holdings. The resulting reduction in supply can lead to further price increases if there is sufficient demand.

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