According to Edris Derakshi on BTC price movement. On the daily chart, Bitcoin has been recording higher highs and lower lows since bouncing off the $92K level. Although the market managed to break above the $100K level, the upward momentum failed to sustain, with strong resistance at the $108K zone.
If the $100K level fails to hold, the price is likely to fall back to the $92K zone in the near future.
Over the past 4 hours, the price movement has looked unstable after the bullish breakout from the $100K level and the descending wedge pattern.
The resistance at the $108K zone has pushed the price down significantly, and the market is now moving back towards the $100K level. The RSI indicator has also fallen below 50%, which could potentially cause a breakout below the $100K level and trigger a deeper price correction.
Based on On-Chain analysis, even though Bitcoin is trading at an all-time high, an interesting observation can be made by looking at the SOPR (Spent Output Profit Ratio) of short-term holders. This metric measures the ratio of profits realized by investors who have held BTC for less than 6 months.
As the chart shows, the STH-SOPR has been declining rapidly in the last few weeks, indicating that most of the profit-taking by short-term holders has been completed. This is a positive sign, as it indicates a potential supply squeeze, which could push prices higher in the coming weeks.
