BTC back towards $100,000 after today’s recovery?

Bitcoin price is troubling investors as it is experiencing a pullback before reaching $100,000. However, as things stand, there is a considerable chance that it will reach the milestone soon.

Technical Analysis

By Edris Derakhshi (TradingRage)

The daily chart

Based on technical analysis, the daily time frame shows massive bullish momentum for BTC. However, the market has been correcting over the past few days after falling short of the $100,000 level.

The $90,000 mark is still intact and could prevent the market from falling further. This is especially true because the RSI is no longer showing an overbought signal.

Source: TradingView The 4-hour chart

As shown on the 4-hour chart, recent Bitcoin price action shows the formation of an ascending channel broken to the downside yesterday. This is often a clear reversal pattern.

However, since the overall structure of the market remains bullish, the price may return to the pattern soon, causing it to fail and paving the way for another push towards $100,000.

On the other hand, although unlikely, a breakdown of the $90,000 level could trigger a much deeper correction towards the $80,000 area.

Source: TradingView On-Chain Analysis

By Edris Derakhshi (TradingRage)

Long term holder SOPR

Chain analysis can always present a different perspective than technical analysis, as it can demonstrate supply and demand dynamics thanks to the transparency offered by the Bitcoin network.

This chart shows the long-term holder SOPR metric, which measures the ratio of realized profits to losses for long-term investors. The 30-day moving average of the LTH SOPR is trending higher and has been above one for some time, indicating that the cohort is taking profits as the market rises.

While you may consider this to be a bearish sign, as profit taking can overwhelm the market with supply, this may not be the case.

LTH SOPR is much lower than during the last all-time high range earlier this year. Therefore, it can be concluded that the price may still go higher before a massive profit event takes place for long-term investors.

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