Bitcoin price has recovered from a sudden decline after being rejected from the $48,000 level. Meanwhile, the cryptocurrency has yet to reach a higher high.
Technical analysis
By TradingRage
The daily chart
On the daily time frame, the price has been rising over the past few weeks after recovering from the $40,000 support level. The market is currently rising again towards the $48,000 resistance level. The relative strength index also shows values above the 50% mark, indicating that the momentum supports further bullish continuation.
If BTC price breaks $48,000, the market will likely head towards a new all-time high in the coming months.
Source: TradingView
The 4 hour chart
Looking at the 4-hour chart, the recent development becomes clearer. The price is currently testing the $45,000 resistance level, but momentum appears to be fading.
The Relative Strength Index also shows a clear overbought signal. Therefore, it is likely that there will be a short-term consolidation or correction before the market can continue towards a higher high.
Source: TradingView
On-chain analysis
By TradingRage
Bitcoin Short-Term Holder Spent Output Profit Ratio (SMA 30)
While Bitcoin's price has recovered from the recent decline, some of the network's fundamentals are cooling. This can be interpreted as a bullish signal as supply appears to be shrinking.
This chart shows the short-term Bitcoin holder spending profit ratio (SOPR). The SOPR metric is a ratio of spent outputs (more than 1 hour and less than 155 days active) to profit at the time of the window. Values above “1” indicate that more short-term investors are selling for a profit. On the contrary, values below “1” indicate that more short-term investors are selling at a loss.
While the SOPR recently showed very high values, the key figure is currently declining. This suggests that many short-term investors have sold their coins and the selling pressure is easing. If this continues, a sustained upward trend can be expected in the short term.
Source: CryptoQuant
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Cryptocurrency charts from TradingView.
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