Bitcoin’s price has been gradually rising over the past few weeks, paving its way towards a new record high, which it reached on Monday. However, it has lost some momentum, and the question is what happens next.
Technical analysis
by Driss Darakhshi (TradingRage)
Daily chart
On the daily time frame, the asset rebounded from the $92,000 support level two weeks ago. The $100,000 level was recently breached to the upside, triggering a gradual rise towards the $110,000 level and possibly higher.
With the RSI indicating that the momentum remains bullish, it is very likely that the market will rise towards the $120,000 level soon.
Four-hour chart
Looking at the 4-hour chart, the recent choppy price action can be clearly seen. The asset has been trapped between the $100,000 and $108,000 levels over the past 10 days or so.
This has led to a lot of uncertainty surrounding the direction of the market in the near future. However, the overall market structure remains bullish, and a break above the $108K resistance is more likely than a bearish reversal.
On-chain analysis
by Driss Darakhshi (TradingRage)
Percentage of whales in Bitcoin exchange
As the price of Bitcoin has recently strengthened after a significant rally in the past few months, investors are wondering if the bull market is over. Analyzing on-chain metrics can provide useful clues for arriving at a conclusion about the current market situation.
This chart displays the ratio of whales in exchange, which measures the ratio of exchange deposits by whales to total deposits. Therefore, it can be considered a proxy for selling pressure by large investors.
As the chart shows, the whale ratio metric has risen recently, but it still shows values much lower than those seen previously when BTC was trading at around $70,000. Therefore, further upside can still be expected if demand is sufficient.
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Cryptocurrency charts By TradingView.
