Bitcoin’s price has managed to bounce back from a period of bearish price action, signaling a potential for a new all-time high in the near future. The daily chart shows that the price has found support at the $56K level and has reclaimed the 200-day moving average around $60K. However, breaking above the $65K resistance level has proven to be a challenge in the last few days despite clear bullish momentum indicated by the RSI. A drop below $60K could invalidate this bullish scenario.
On the 4-hour timeframe, the market has seen an impulsive rally after breaking the bearish trendline. Despite this, the price has struggled to surpass $65K and a correction might be on the horizon. The RSI also shows a bearish divergence and an overbought signal, hinting at a potential drop to $60K. Nevertheless, the overall market structure remains bullish in the short term.
The behavior of short-term BTC holders plays a crucial role in shaping price action in the immediate future. Analyzing the Bitcoin Short-Term Holder SOPR metric can offer insights into upcoming price movements. This metric assesses whether holders who have had their coins for less than 6 months are realizing profits or losses. Values above 1 indicate profit-taking, while values below 1 signify losses.
In the current scenario, the 30-day exponential moving average of the Short-Term Holder SOPR has been below 1, suggesting that short-term holders are selling at a loss. This is often a signal of correction bottoms during long-term bull markets. If the metric rebounds above 1, it could pave the way for a price rally and potentially set a new record high in the coming weeks.
Bitcoin’s recent price recovery and potential for a new all-time high are supported by technical indicators and market dynamics. Despite facing resistance at the $65K level, bullish momentum and the behavior of short-term holders suggest that further upside is possible. Traders and investors should monitor key levels and metrics to capitalize on potential price movements in the volatile cryptocurrency market.