- Bitcoin experiences a downtrend, breaking below the significant support zone of $59K, but a bullish rebound near the 100-day MA suggests potential for a resurgence in buying pressure.
- Technical analysis of the daily and 4-hour chart reveals a possible bullish trend in the mid-term, provided the price remains above the critical $59K level.
- On-chain analysis of the Bitcoin Short-Term Holder (STH) Realized Price metric indicates the overall trend remains bullish as long as the price stays above the short-term participants’ realized price.
Bitcoin’s recent downtrend breaks significant support zone, but a bullish rebound hints at potential resurgence. Technical and on-chain analysis suggest a positive mid-term outlook if key price levels are maintained.
Bitcoin’s Downtrend and Subsequent Bullish Rebound
After an extended period of sideways consolidation, Bitcoin witnessed a downtrend, breaking below the significant support zone of $59K. However, a notable bullish rebound near the 100-day MA suggests the potential for a resurgence in buying pressure.
Technical Analysis: Daily and 4-Hour Chart
Upon a comprehensive review of the daily chart, it becomes evident that Bitcoin underwent an extended phase of sideways consolidation within the pivotal price range of $59K to $72K. The recent price action saw a decline, breaching the lower boundary of this range and the 100-day moving average. This bearish movement resulted in the liquidation of many long positions, leading to a cooling-down period in the perpetual markets. Nevertheless, Bitcoin found significant support at a crucial zone, the 0.618 ($59,395) Fibonacci retracement level, aligned with the vital 100-day moving average at $59K. This region sparked a bullish reversal, raising expectations for a renewed positive trend in the mid-term.
On-chain Analysis: Bitcoin Short-Term Holder (STH) Realized Price Metric
The accompanying chart showcases the Bitcoin Short-Term Holder (STH) Realized Price metric, a crucial indicator often utilized to identify support and resistance regions in the chart. This metric calculates the average short-term realized price, encompassing transactions occurring within a span of 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 bullish run, this metric has consistently served as robust support for the price on multiple occasions. Following the recent decline in Bitcoin, the price reached this pivotal level and found support, triggering a bullish rebound.
Conclusion
Despite the recent downtrend, Bitcoin’s bullish rebound near the 100-day MA, coupled with the technical and on-chain analysis, suggests a potential resurgence in buying pressure and a positive mid-term outlook, provided the price remains above the critical $59K level and the short-term participants’ realized price.
