Is BTC in danger of falling to $80,000 soon?

Bitcoin price is showing some worrisome signs that suggest a deeper correction is in the offing as the price has failed to hold the $100,000 level.

Technical Analysis

By Edris Derakhshi (TradingRage)

The daily chart

On the daily chart, the price has been gradually rising over the past few weeks, creating a new record high above $100,000. However, in recent days, the market has been unable to continue its bullish momentum, falling below $100,000 and even dropping to $92,000.

If the market fails to recover this area soon, a deeper correction towards the $90,000 level and even the $80,000 support zone could be expected in the near term.

Source: TradingView The 4-hour chart

Looking at the 4-hour time frame, the price action seems a bit more difficult to predict. The market has been making higher highs and lower lows within an ascending channel, but has been rejected from the upper limit of the channel around the $108,000 mark.

Accordingly, the $100,000 level has been broken to the downside and the RSI is also showing values ​​below 50%, indicating that market momentum has shifted to the downside.

However, the lower trendline still holds, which could lead to a quick recovery above the $100,000 level and a bullish continuation. However, if the pattern breaks to the downside, a drop below the $90,000 level could be expected.

Source: TradingView On-Chain Analysis

By Edris Derakhshi (TradingRage)

Active addresses (100-day MA)

Analyzing on-chain metrics can generate valuable and interesting insights into underlying market dynamics. One such key metric that can provide insights beyond price action is the active addresses metric.

Bitcoin network activity is one of the fundamental factors that can help the valuation of BTC. The chart shows that the 100-day moving average of active addresses has recovered quickly during the recent uptrend and break above the $70,000 area.

However, it has not yet reached its all-time high, showing a clear divergence between price action and network activity. As a result, if network activity doesn’t hit a new record soon and starts falling again, a long correction could be in for Bitcoin.

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