Despite attempts to regain $67,000, this Bitcoin indicator signals caution: BTC price analysis

Bitcoin price has recently found support near a significant price level of $60,000, marking the beginning of a sideways correction period. However, buyers are aiming to regain the $73,000 threshold in the medium term and push the price towards all-time highs.

technical analysis

Written by Shayan

daily chart

A closer analysis of the daily chart shows that the Bitcoin price is entering a medium-term correction phase following a notable rally towards its all-time high of $73,000. This consolidation extends into an important support area separated by the 0.5 ($62,000) and 0.618 ($59,5,000) Fibonacci retracement levels, where demand currently exceeds supply.

As a result, this increased buying pressure halted the ongoing retracement and triggered a significant reversal towards the $66,000 threshold. Nevertheless, the price appears to have entered a mid-term sideways consolidation between the $60,000 support area and the $73,000 substantial resistance before a breakout occurs. Overall, the general outlook remains bullish, with the price likely to break out of the upper end of this range and reach new all-time highs.

4 hour chart

A closer look at the 4-hour chart shows a notable rejection near the $73,000 resistance area, heading towards important support areas including the $60,5,000 support level, which coincides with the dynamic support of the upper price of the ascending channel. You can see that this has led to a multi-day decline. boundary.

However, the price has shown a sideways consolidation movement after touching the upper trend line of the channel, creating uncertainty in the market.

It is important to note that the recent decline may be due to profit realization by market participants. Such behavior is typical during healthy bullish trends, allowing the market to take a break and regain purchasing power. As a result, Bitcoin is expected to resume its rally towards the $73,000 threshold once the consolidation phase ends.

On-chain analysis

Written by Shayan

“Exchange Whale Ratio” measures the ratio of the top 10 significant inflows to the total inflows on a cryptocurrency exchange. An increase in the value of this indicator indicates that large amounts of money from prominent players, commonly referred to as “whales”, are being transferred to the exchange.

Currently, the currency whale ratio is skyrocketing as prices enter a period of sideways consolidation and uncertainty. However, a significant increase in whale activity in the market is usually followed by a period of instability, followed by a short-term decline, leading to the formation of local dips.

On an hourly basis, the whale ratio indicator has once again reached its peak level. This development signals the potential for increased volatility for Bitcoin, which could lead to a return to the $62,000-$63,000 range that previously served as support. It should be mentioned that whale selling amidst the rapid rise in BTC prices is likely to pave the way for a healthy correction.

Nevertheless, it is important to closely monitor this ratio, as changes in the pattern of this ratio can lead to fluctuations in Bitcoin price.