Outside Source
Bitcoin is yet to continue its historic run above the $100K level, but there is some optimism that can be drawn from 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 $100K resistance level after dropping below it earlier in December. Yet, the price has been supported from the $92K support level several times, which could indicate that the market is making a bottom to rally toward a new high above the $100K resistance level. In this case, the $110K mark could be the next potential target for the largest cryptocurrency.
The 4-Hour Chart
The 4-hour chart clearly shows the BTC price action over the past few weeks. The market has broken an ascending channel to the downside and retested the pattern’s lower boundary a couple of times. However, the $92K support zone has prevented a deeper drop.
With the RSi also rising above the 50% threshold again, market momentum can be considered bullish, and the price could soon break the $100K resistance level to the upside and begin a new rally higher.
On-Chain Analysis
By Edris Derakhshi (TradingRage)
Short-Term Holder SOPR
While Bitcoin’s price has been consolidating around the $100K level, investors have debated whether the bull run is over. This uncertainty can be observed by looking at holders’ behavior during the recent week.
This chart presents the short-term holder SOPR metric, which measures the ratio of profits realized by short-term holders. As the chart shows, the STH SOPR has been on a decline after a rapid rise during the market’s last rally. This indicates that a wave of profit realization has occurred recently, as Bitcoin hit the key $100K level.
The resulting selling pressure by short-term holders has probably been one of the primary reasons Bitcoin failed to continue its rally higher. Yet, as the price is still holding above the $90K mark, it is evident that there is still sufficient demand to hold the market and even push it higher in the coming weeks.
This article first appeared at CryptoPotato
