Outside Source
Bitcoin’s price is currently teasing with investors, as it is struggling to sustain its rally above the $100K resistance level and could even be on the verge of a short-term correction.
Technical Analysis
By Edris Derakhshi (TradingRage)
The Daily Chart
On the daily chart, the asset has been making higher highs and lows since rebounding from the $92K level. While the market has also broken the $100K level to the upside, it has failed to sustain bullish momentum and is having a hard time getting past the $108K resistance level.
If the $100K level is lost, a drop back toward the $92K region could be expected in the near future.
The 4-Hour Chart
Looking at the 4-hour timeframe, things look a lot messier in the past few days. The price action has been extremely choppy after the bullish breakout from the $100K level and the falling wedge pattern.
The $108K resistance zone has also rejected the asset decisively, and the market is now moving back toward the $100K level. The RSI has also dropped below 50%, which could lead to a breakdown of the $100K area and cause a deeper correction.
On-Chain Analysis
By Edris Derakhshi (TradingRage)
Bitcoin Exchange Netflow
While Bitcoin is trading at all-time high prices, an interesting observation can be made by looking at the short-term holder SOPR. This metric measures the ratio of realized profits by investors who have held their BTC for less than 6 months.
As the chart depicts, the STH-SOPR has been dropping rapidly over the past couple of weeks, indicating that most profit-taking by short-term holders has already been done. This is a positive signal, as it points to a potential supply shrink, which could push the price higher in the upcoming weeks.
This article first appeared at CryptoPotato
