Bitcoin’s price has been holding strong around the $60K level following the significant crash a few weeks ago. Investors are now optimistic that the market will soon rally to new all-time highs.
Technical Analysis
By TradingRage
The Daily Chart
On the daily timeframe, the price has been consolidating during the last couple of weeks after recovering from the $50K mark.
Yet, the 200-day moving average, located around $63K, is yet to be broken to the upside. A bullish breakout above this level is a must for BTC to continue its long-term rally.
On the other hand, if the market loses the $56K support level, things can get worse, as the price will likely drop to $52K and even lower in the short term.
The 4-Hour Chart
Looking at the 4-hour chart, the price has been hovering around the $60K level over the last couple of weeks.
However, it is slowly beginning to make higher highs and lows as the market is seemingly gaining bullish momentum again.
The Relative Strength Index also validates this scenario, as it shows values above 50%. Therefore, a rally toward the $64K resistance level and even higher seems likely in the coming weeks.
On-Chain Analysis
By TradingRage
Bitcoin Exchange Reserve
During the recent Bitcoin consolidation and correction, market participants have been wondering whether an accumulation or distribution phase is happening. Analyzing the fundamentals of the network can help answer this question.
This chart demonstrates the exchange reserve metric, which measures the amount of BTC held in exchange wallets. These coins are the most liquid ones and can be a good proxy for supply, as they can be sold in any instant.
As the chart shows, the exchange reserve has been on a steep decline during the recent price consolidation, indicating that the investors are looking at this phase as a temporary correction before a longer-term rally. This aggregate accumulation can lead to higher prices soon if nothing changes drastically.
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