Is Bitcoin Targeting $70,000 In The Short Term?

The price of Bitcoin has broken through a key level recently and seems to be aiming for a new near-term all-time high.

Technical Analysis

By Edris Derakhshi (TradingRage)

The daily chart

On the daily chart, the price has finally broken above the $64,000 level and the 200-day moving average, which is around the same mark.

With the RSI also showing clear bullish momentum, the cryptocurrency is likely to continue its uptrend towards the $68,000 resistance zone in the short term.

Otherwise, in case of a correction, the 200-day moving average is likely to hold the price and push the market higher.

Source: TradingView The 4-hour chart

Looking at the 4-hour period, the price has been creating higher highs and lows since its rally from the $52,000 support level.

The bullish market movement has created a clear trend line, which has been supporting Bitcoin for weeks. If this trend remains intact, it will only be a matter of time before the market reaches the $68,000 level.

On the other hand, if the trend line breaks to the downside, a pullback to the $60,000 level would at least be likely.

Source: TradingView On-Chain Analysis

By Edris Derakhshi (TradingRage)

Short-term holder of Bitcoin SOPR

During the recent Bitcoin price consolidation and gradual correction, many short-term holders, even non-profits, panicked and sold their coins. This chart shows the Bitcoin Short-Term Holder SOPR, which measures the ratio of gains/losses realized by short-term investors.

As the chart suggests, the STH SOPR hit a new high when the price first reached $70,000, but has declined rapidly over the past few months. Short-term holders have even realized losses since July as the metric has dipped below one. However, with the recent rally in prices, these investors are turning a profit again.

While this is natural behavior in bull markets, if the selling pressure resulting from this profit taking is not met by sufficient demand, the price could fall again.

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