BTC Risks Falling Towards $80,000 If It Fails To Recapture $100,000 Soon

Bitcoin has been unable to sustain its recovery above the $100,000 level and has been correcting for the past week.

However, a bullish continuation may materialize soon.

Technical Analysis

By Edris Derakhshi (TradingRage)

The daily chart

On the daily chart, the asset fell below the $100,000 level last week and has not been able to rally again since then. Although the $90,000 support zone has held the market, preventing it from going lower, the price has failed to break the $100,000 level once again and is rejected to the downside.

This could lead to a deeper continuation below $90,000 and into the $80,000 area in the coming weeks if the price fails to break above $100,000.

The 4 hour chart

Considering the 4-hour period, things look a bit more complicated for Bitcoin. The price has recently broken the ascending channel pattern to the downside, which may be a reversal signal. The lower limit of the pattern has also been retested twice along with the $100,000 resistance level.

However, both levels have held and pushed the asset lower, which could lead to a drop towards the $90,000 level and even lower in the near term.

Chain analysis

By Edris Derakhshi (TradingRage)

Long term holder SOPR

Not everything can be figured out through price and technical analysis. For better insight into the underlying dynamics of the Bitcoin network, it is beneficial to analyze chain metrics.

This chart presents the long-term holder SOPR metric, which measures the profit realization ratio by investors who have held their coins for more than 6 months. As the chart suggests, the profit realized is relatively high, but has not yet reached the values ​​previously seen when the market was consolidating below the $70,000 level. This is especially interesting since BTC is now trading around $100,000.

As a result, it could be interpreted that the selling pressure of long-term holders is still insufficient to overwhelm the market, and the price could still rise in the coming weeks.

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