Bitcoin has seen a recent recovery in its price after a period of bearish activity. With the current upward momentum, there is potential for the market to reach a new all-time high in the near future. On the daily chart, Bitcoin has found support at the $56K level and reclaimed the 200-day moving average around $60K. However, breaking the $65K resistance level has proven to be a challenge in the last few days. Despite this, the RSI indicates a bullish momentum, suggesting that Bitcoin could soon trade above $70K. However, a drop below $60K could change this scenario.
Analyzing the short-term buying and selling behavior of Bitcoin holders is crucial in understanding price action. The Bitcoin Short-Term Holder SOPR metric provides valuable insights into the market trends. Values above 1 indicate selling at a profit, while values below 1 suggest losses. The current trend shows that short-term holders are selling at a loss, indicating a potential correction bottom in a long-term bull market. If the SOPR metric rises above 1, it could lead to a price rally and a new all-time high in the coming weeks.
On the 4-hour timeframe, Bitcoin has started an impulsive rally after breaking a bearish trendline. However, attempts to surpass the $65K level have been unsuccessful, and a correction may occur. The Relative Strength Index also signals a bearish divergence and overbought conditions, potentially leading to a decline towards $60K. Despite these factors, the overall market structure remains bullish in the short term, suggesting that Bitcoin still has the potential to reach new highs.
As Bitcoin continues to show signs of upward momentum and potential for a new all-time high, it is important to closely monitor key factors such as price levels, market structure, and short-term holder behavior. While challenges like resistance at $65K and overbought signals exist, the overall bullish trend indicates that Bitcoin could achieve significant growth in the near future. By staying informed and analyzing market trends, investors can make informed decisions to capitalize on Bitcoin’s potential for further gains.