Coin World Report:
The price of Bitcoin has been falling in the past few weeks as it failed to reach a new all-time high. However, the asset is currently approaching a key support level.
Technical analysis
By TradingRage
Daily chart
With the rapid decline in BTC price, it is approaching the daily 200-day moving average. However, in order to bring the asset down to the level of around $57,000, it must decisively break through the support level of $60,000.
At the same time, the RSI has also reached the oversold zone, which may soon lead to a reversal of the bull market.
4-hour chart
The 4-hour time frame provides a clearer picture of the recent price trend. The BTC price fell to below $65,000 a few days ago, quickly dropped below $60,000, and then rebounded to above $60,000.
This false breakthrough below the $60,000 support area has led to a large number of long-term liquidations and may indicate that the asset will soon reverse higher. However, this largely depends on whether the cryptocurrency can maintain the support levels of $60,000 and $57,000.
On-chain analysis
By TradingRage
Bitcoin Long-Term Holder SOPR
With the price failing to stay above $70,000 again, many investors are concerned that BTC may be creating a local high. From some basic indicators of the Bitcoin network, their concerns seem justified.
The chart shows the SOPR indicator for long-term holders of Bitcoin, which shows the profit realization rate of investors holding Bitcoin for more than six months. It is clear that despite the trading price being below this level for the past few days, the profit realization rate of these holders is still higher than the historical high of $69,000.
One might think that this profit-taking behavior is natural for a bull market, but the magnitude of it may be a worrying sign. If this trend continues, subsequent selling pressure could crush the price, leading to further declines and possibly ending the bull market, at least in the medium term.