The consolidation is nearing its end as BTC prepares for a new all-time high

The price of Bitcoin has been consolidating around its all-time high for the past few days after a massive increase of over 30%.

As things currently stand, it looks like the run is not over yet.

Technical Analysis

By Edris Derakhshi (TradingRage)

The daily chart

On the daily chart, the asset has recovered aggressively since breaking above the $74,000 level. The market is currently struggling to break above the $92,000 mark as the RSI is also showing an overbought status.

However, as the market structure suggests, it could only be a matter of time before BTC trades above $100,000, the long-term goal for many investors in recent years.

The 4 hour chart

The 4-hour chart shows a clear picture of recent price consolidation as the market has been forming a symmetrical triangle pattern around the $90,000 region.

These patterns can be continuation or reversal patterns, depending on the direction of the breakout. However, even if the asset breaks the bearish pattern, it would likely be a short-term correction as the overall trend remains bullish as long as the $80,000 support level is intact.

Chain analysis

By Edris Derakhshi (TradingRage)

Short-term holder SOPR (EMA 30)

As always, technical analysis alone might not be enough to understand the dynamics of the Bitcoin market. Therefore, it is beneficial to use the transparency provided by the Bitcoin blockchain to get a better picture of investor behavior.

This chart presents the Bitcoin Short-Term Holder SOPR, which measures the proportion of profits made by holders who bought their BTC in the last 155 days.

As the chart suggests, the 30-day exponential moving average of the STH-SOPR has risen rapidly again, but has yet to reach the values ​​previously seen when BTC was trading around $70,000 earlier this year.

This could indicate that short-term market participants are taking their profits less aggressively. As a result of this decrease in selling pressure compared to before, Bitcoin is likely to rise sharply in the short term.

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