Bitcoin Price Analysis: BTC Paints Multiple Bullish Signals as Price Hovers Around $62K

5 months ago 49

Bitcoin’s price is yet to end its consolidation and has not shown any desire to continue higher in the past several weeks.

Technical Analysis

By TradingRage

The Daily Chart

On the daily timeframe, the price has been trapped inside a large descending channel pattern for two months now, failing to break out to either side. Yet, following the recent fake breakout from the lower boundary, the market is seemingly gaining momentum to recover and continue higher.

The Relative Strength Index has been on the rise and is now on the verge of rising above the 50% threshold, meaning that the momentum is shifting bullish. This leaves the midline of the descending channel as the most important resistance element that is keeping the market from rallying once again.

The 4-Hour Chart

Looking at the 4-hour chart, it is evident that the price has been repeatedly testing the $60,000 support level over the recent weeks.

Interestingly, the action seems to be creating an inverse head and shoulders pattern, with the neckline being located at the $63,500 mark. In case this level is broken through, market participants can expect a rally toward the $68K resistance level and even beyond in the short-term.

On-Chain Analysis

By TradingRage

Bitcoin Short-Term Holder SOPR

Bitcoin’s price has failed to keep up its significant upward momentum and has been going through a gradual correction over the past couple of months. While there could be many reasons for such corrections, profit realization is the most prominent.

This chart demonstrated the STH SOPR, a metric that measures the ratio of the realized profits by short-term holders. Values above one indicate profit-taking, while values below one show losses being realized.

As the chart demonstrates, the STH SOPR has been rapidly dropping over the recent correction, retreating from record highs. This shows that short-term holders have already realized massive profit-taking. With the STH SOPR now hovering around one, the weak hands are likely out of the market, and if there is any time for the beginning of a new rally, it could be now.