Here’s BTC’s Next Target After Up 4% Daily – Bitcoin Price Analysis

Bitcoin price has been trending down since the last week of August, breaking below several support levels.

However, it is currently showing signs of a potential rally as the asset rose by more than four thousand yesterday. Could there be more bullish moves on the horizon?

Technical Analysis

By Edris Derakhshi

The daily chart

The daily chart shows that the price of BTC has declined since it was rejected from the 200-day moving average, located around the $64,000 resistance level. Since then several levels of support have been lost and the price has dropped to just over $52,000.

The market has recovered slightly from this level, but the momentum is clearly bearish. As a result, the asset still needs to break above the $64,000 area and the 200-day moving average to start a new uptrend.

The 4 hour chart

In the 4-hour period, it is clear that the price has been declining within a descending channel. However, the market has broken above the channel recently and a short-term rally towards the $60,000 level is likely.

That is, of course, if the breakout is valid and the market doesn’t quickly move down within the channel. Since the RSI is also showing an uptrend in this timeframe, a higher rally is highly likely.

Chain analysis

By Edris Derakhshi

Long Term Holder of Bitcoin SOPR

In the Bitcoin network, long-term holders usually have the majority of the supply. As a result, analyzing their behavior could be very beneficial in understanding the dynamics of market supply and demand.

This chart presents the 30-day moving average of the long-term holder SOPR metric, which measures the ratio of gains/losses made by long-term BTC holders.

As the chart suggests, the LTH-SOPR has been declining since the market failed to break above the $70,000 level. This demonstrates profit-taking behavior by long-term holders when the price is falling. If this trend continues, subsequent selling pressure may cause the price to move further down.

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