Bitcoin Price Analysis: Does BTC Have Enough Strength to Chart New ATH This Week?
Bitcoins price is on the verge of creating a new all-time high following the significant rally in the past few days.
However, the asset has faced some initial resistance and is yet to break above the March peak.
Technical Analysis
By Edris Derakhshi (TradingRage)
The Daily Chart
On the daily chart, the asset has begun a rally since its rebound from the $52K support level. Over the past few weeks, it has broken above the 200-day moving average, located around the $64K level and the $69K resistance zone.
Currently, BTC is testing the $74K resistance zone, which is also its record peak and is highly likely to get broken to the upside, which would potentially lead to a longer-term rally.
The 4-Hour Chart
Looking at the 4-hour timeframe, things are much clearer, as the BTC price has gone through an accumulation period during the recent consolidation below the $68K level. This has led to a massive surge toward the $74K area.
However, the RSI is showing a worrying pattern, demonstrating a clear overbought signal. This might lead to a short-term consolidation or pullback. Yet, judging by the overall market structure, Bitcoin might well be on the verge of exploding higher in the next few months.
On-Chain Analysis
By Edris Derakhshi (TradingRage)
Bitcoin Short-Term Holder SOPR
While a new record high seems imminent on the Bitcoin price chart, the rate of profit-taking does not show such a situation. This chart presents the short-term holder SOPR metric, which measures the ratio of profits realized by investors. Values above 1 indicate profit realization, while values below 1 show losses being realized on aggregate.
As the chart suggests, while short-term holders are realizing profits, the STH SOPR is in no way near the level at which it was the last time BTC was trading around the $74K level. This is a positive sign, as the market might be far from getting overwhelmed with supply, and a sustainable rally higher could still be expected.
The post Bitcoin Price Analysis: Does BTC Have Enough Strength to Chart New ATH This Week? appeared first on CryptoPotato.
Text source: CryptoPotato
