This support level will determine whether BTC will fall to $52,000 or rise to $60,000 – Bitcoin Price Analysis

The price of Bitcoin has yet to show a willingness to recover as the market has not been able to recover from any support levels.

As a result, things could get even worse in the coming days.

Technical Analysis

By Edris Derakhshi

The daily chart

On the daily chart, the asset has been moving lower since its rejection from the $64,000 resistance level and the 200-day moving average, located around the same area.

The market has also lost the $60,000 level and is currently penetrating the $56,000 support zone. If this level is broken, a further drop towards the $52,000 area would be imminent in the short term. Since the RSI is also showing a clear downward trend in market momentum, a decline seems likely.

The 4 hour chart

Looking at the 4-hour chart, there might still be hope for BTC. The asset has been gradually falling within a descending channel above $56,000. However, the market is currently testing the lower boundary of the channel. In case of a bearish breakout, an aggressive drop towards the $52,000 level would be very likely.

However, if the channel holds, investors can hope for a bullish breakout and a subsequent retest of the $60,000 level.

Chain analysis

By Edris Derakhshi

Short-term holder of Bitcoin SOPR

Although technical analysis is a valuable tool for anticipating short-term market movements, it may not be a sufficient means of understanding the market dynamics behind trends.

This chart presents the Bitcoin Short-Term Holder SOPR, which measures the ratio of gains/losses realized by short-term market participants. Values ​​above 1 indicate the realization of profits, while values ​​below 1 are associated with losses. Therefore, to get a better overview of the aggregate state and investor sentiment, the STH-SOPR is quite a useful indicator.

As the chart shows, the 30-day exponential moving average of the STH SOPR metric has been below 1 for some time. This indicates that many short-term investors have been realizing losses during the recent price consolidation. Therefore, if this behavior continues, the resulting supply could overwhelm demand and drive prices even higher in the coming weeks.

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