- Bitcoin experiences a modest bullish rebound from the $59K support level, only to encounter selling pressure, retracing back to the critical 100-day moving average at $61K.
- The price action around this pivotal juncture is likely to dictate Bitcoin’s next decisive move.
- Technical and on-chain analysis provide insights into potential future movements.
Bitcoin’s price action at the crucial $61K juncture could dictate its next decisive move. This article provides an in-depth technical and on-chain analysis of the current market situation.
Technical Analysis
A thorough examination of the daily chart reveals Bitcoin’s extended sideways consolidation phase near the pivotal $60K price range. Recently, the cryptocurrency witnessed a decline after a notable bullish rebound from the $59K threshold, leading to a retracement toward a critical support region.
The Daily Chart
Bitcoin sellers have been grappling with breaching this significant support area, which encompasses the 100-day MA and the 0.618 ($59,395) Fibonacci level, for several weeks. However, a sudden decline below the critical $59K level could trigger another notable downward movement toward the $56K threshold.
The 4-Hour Chart
Analysis of the 4-hour chart reveals heightened buying pressure near the critical $58K mark, resulting in a bullish surge toward the $66K threshold. However, increased selling pressure around $66K led to a noticeable downtrend, bringing the price back to the crucial $60K support region.
On-chain Analysis
Profitability is pivotal in market psychology, particularly when macroeconomic conditions don’t favor risk assets. Therefore, analyzing participants’ profitability offers valuable insights into the market’s state and sentiment. The chart illustrates the Supply-in Profit (%) metric, representing the proportion of Bitcoin’s supply-in profit.
Conclusion
As depicted in the graph, the metric has recently surged to its highest levels, indicating that many participants may be considering realizing profits, potentially leading to increased selling pressure. However, despite a notable decline in the metric, the price has only undergone slight consolidation, suggesting that the recent decline might be a corrective movement triggered by profit realization. It’s plausible that once the correction stage concludes, the price will likely initiate a fresh, impulsive surge.
