Massive Volatility for BTC Around $64,000 But So What?

Bitcoin price is showing clear signs of recovery, with the market retrieving some key levels. Investors are now hoping that the correction phase is over.

Technical Analysis

By TradingRage

The daily chart

In the daily period, the price has recently shown an impulsive recovery from the $56,000 support level, breaking several resistance elements. The 200-day moving average, located around the $59,000 mark, the bearish trend line and the $60,000 resistance level, has been broken to the upside.

However, the $65,000 resistance level prevents a continuation higher. Meanwhile, the RSI shows that the momentum favors a bullish move. It seems only a matter of time before the market goes higher and even creates a new all-time high.

Source: TradingView The 4-hour chart

Looking at the 4-hour chart, it is clear that the price has been making higher highs and lower lows since two false breaks below the $57,000 support level.

The price has also broken the bearish trend line and the $60,000 level without hesitation. However, the market’s reaction to the $65,000 resistance level indicates that it could return to the $60,000 level before continuing its upward move.

Source: TradingView On-Chain Analysis

By TradingRage

Bitcoin Exchange Reserve

With the price of Bitcoin finally recovering below the $60,000 mark, analyzing the behavior of investors using on-chain metrics can provide both reasons for the recent recovery and indications for the future.

This chart shows the Bitcoin Exchange Reserve metric, which measures the amount of BTC held in exchange wallets. Increases in reserves indicate that investors are depositing their coins on exchanges to sell (most likely), while decreases show hoarding by holders.

As the chart suggests, the exchange reserve metric has been falling rapidly in recent weeks, indicating that many large investors have used the recent correction and bought the dip, and are now withdrawing their coins for storage long-term. This reduction in supply may lead to a sustainable recovery in the coming months.

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