After a 10% weekly drop, what next for BTC?

Bitcoin price experienced a significant drop yesterday after breaking the $64,000 support level. The price is now in a key area that could determine the mid-term fate of the crypto market.

Technical Analysis

By TradingRage

The daily chart

On the daily chart, the price has been falling since a double pattern was created above the $68,000 resistance level. The $64,000 level has also been broken to the downside and the cryptocurrency is testing the 200-day moving average.

If it also fails to hold the price, the market is likely to go through a much deeper decline towards $52,000. With the RSI also showing values ​​below 50%, momentum points to a possible continuation of the bearish move.

Source: TradingView The 4-hour chart

Looking at the 4-hour chart, things are looking a bit more bullish for Bitcoin. The price has rallied from the $60,000 support level with a long wick and is currently trading between $64,000 and $60,000.

Meanwhile, a retest of the $60,000 support zone is highly likely as both momentum and market structure hint at this scenario. Whether the $60,000 level holds or breaks will likely determine the price trend in the coming months.

Source: TradingView On-Chain Analysis

By TradingRage

Short-term holder of Bitcoin SOPR

As Bitcoin again falls short of a new record high, analyzing investor behavior can provide clues to better predictions of future price action.

This chart shows the short-term holder SOPR, an on-chain metric that measures the ratio of gains/losses realized by short-term Bitcoin holders. Values ​​above one show profit realization, while values ​​below 1 indicate loss realization.

As the chart shows, the STH SOPR metric has recently recovered above 1 as the market has recovered from the $55,000 level.

However, after the recent drop, the STH SOPR is back down towards one, as short-term holders are only making marginal profits. If this trend continues, the market may be overwhelmed by oversupply as holders look to offload their coins with minimal losses.

Source: CryptoQuant SPECIAL OFFER (Sponsored) Binance Free $600 (CryptoPotato Exclusive): Use this link to register a new account and receive an exclusive welcome offer of $600 to Binance (full details).

2024 LIMITED OFFER on BYDFi Exchange – Up to $2888 Welcome Reward, Use this link to register and open a 100 USDT-M position for free!

Disclaimer: The information found on CryptoPotato is that of the quoted writers. It does not represent CryptoPotato’s views on whether to buy, sell or hold any investment. You are advised to do your own research before making any investment decisions. Use the information provided at your own risk. See disclaimer for details.

TradingView Cryptocurrency Charts.