Bitcoin’s price took a significant hit recently as it fell below the $64K support level. This has put the price of Bitcoin in a crucial position that could determine the future of the crypto market in the coming months.
Looking at the technical analysis, on the daily chart, Bitcoin has been on a downward trend since forming a double top pattern at the $68K resistance level. The breakdown of the $64K level has led to the cryptocurrency testing the 200-day moving average. If the price fails to hold at this level, we could see a further decline towards $52K. Additionally, with the RSI showing values below 50%, the momentum is indicating a continuation of the bearish trend.
On the 4-hour chart, there is a bit of optimism as Bitcoin has bounced back from the $60K support level with a long wick. It is currently trading within the range of $64K and $60K. However, a retest of the $60K support zone is likely, and whether it holds or breaks will determine the price trend in the near future.
In terms of on-chain analysis, the short-term holder SOPR metric is showing that short-term holders are currently only realizing marginal profits. If this trend continues, there could be an excess supply of Bitcoin in the market as holders look to sell off their coins with minimal losses.
Overall, the future of Bitcoin’s price remains uncertain as it hovers around key support levels. Investors are advised to conduct their own research and make informed decisions before investing in the cryptocurrency market.