Coin World News report:
The price of Bitcoin is currently experiencing a downward trend as it has failed to continue rising above $70,000. This raises the question of whether the bull market has come to an end or if this is just a temporary adjustment.
Technical Analysis
By TradingRage
Daily Chart
As shown on the daily chart, the price of Bitcoin has failed to surpass the resistance zone of $75,000 multiple times and is currently falling. The support at $65,000 has also been lost, but the key level of $60,000 is currently supporting the price.
The 200-day moving average is also around $57,000, which may provide support if the price falls below $60,000. Overall, as long as the trading price of BTC remains above the 200-day moving average, this trend can still be considered bullish.
Source: TradingView
4-hour Chart
The 4-hour chart shows that the price briefly fell below the support level of $60,000 a few days ago but quickly rebounded above it. This is a typical false breakout behavior, which may indicate a short-term rebound towards the level of $65,000.
However, the RSI still shows a value below 50%, indicating that the momentum is still favorable for sellers. Therefore, there is still a possibility of breaking below the $60,000 level.
Source: TradingView
On-chain Analysis
By TradingRage
Bitcoin Whale Ratio
Analyzing on-chain indicators for Bitcoin can be very helpful in a market that seems to be reversing. This chart shows the BTC Whale Ratio indicator, which measures the ratio of large deposits to exchanges and assumes that they belong to whales.
Therefore, a higher reading may indicate that Bitcoin whales are actively depositing coins into exchanges, which is likely for selling purposes.
It is evident that the Whale Ratio has recently reached a value higher than 0.5, which is very high. This indicates that whales are selling a large amount of their coins. Therefore, if this trend continues, the price of Bitcoin may go even lower as the market becomes overwhelmed with excess supply.
Source: TradingView
