Bitcoin’s price has been gradually rising over the past few weeks, paving its way toward a new record high, which arrived on Monday. However, it lost some momentum, and the question is what will happen next.
Technical Analysis
By Edris Derakhshi (TradingRage)
The Daily Chart
On the daily timeframe, the asset rebounded from the $92K support level a couple of weeks ago. The $100K level has been broken to the upside recently, leading to a gradual rise toward the $110K level and potentially higher.
With the RSI indicating that the momentum is still bullish, it is very likely that the market will rally toward the $120K level soon.
The 4-Hour Chart
Looking at the 4-hour chart, the recent choppy price action can be clearly witnessed. The asset has been trapped between the $100K and $108K levels over the last ten days or so.
This has led to a lot of uncertainty surrounding the market trend in the near future. Yet, the overall market structure still remains bullish, and a breakout above the $108K resistance level is more probable than a bearish reversal.
On-Chain Analysis
By Edris Derakhshi (TradingRage)
Bitcoin Exchange Whale Ratio
As Bitcoin’s price has been consolidating recently after a significant rally in the past few months, investors are wondering whether the bull market is over. Analyzing on-chain metrics can offer useful clues to reach a conclusion about the current state of the market.
This chart presents the exchange whale ratio, which measures the ratio of exchange deposits by whales to total deposits. Therefore, it can be seen as a proxy of selling pressure by large investors.
As the chart demonstrates, the whale ratio metric has been rising recently, but it is still showing values far less than those witnessed earlier when BTC was trading around $70K. Therefore, more upside can still be expected if sufficient demand is present.
