The recent spike in bitcoin’s price left many market participants in a well-known phase called “Disbelief.” Many technical analysts were waiting for the RSI indicator and price trend to break above the long-lasting resistance line that was formed in the daily time frame. Here, this break out is investigated from both technical and onchian perspectives.
Bitcoin had been stuck below an important resistance trendline (blue line) for a couple of months. Eventually, it broke above it with a strong green candle and spiked almost 11% in a single day.
On the other hand, BTC broke the resistance RSI trendline simultaneously and formed a nice pattern to confirm the breakout. Currently, the price is below the 100D MA, which is critical resistance, and it is possible to reject the price from the $42.5K level.
Regardless, Bitcoin needs to form a higher high above $44.4K daily to confirm the trend reversal. The following resistance levels are $44K-$45K and then $50K-$52K ranges.
In the lower time frames, we can notice another significant resistance trendline (green line) that has been rejecting the price persistently. The bullish momentum has been decreased, and the price has reached the trendline. We must wait to see if bitcoin can break the trendline or get rejected. Also, the following resistance levels have been specified with the white horizontal lines.
Looking at the short-term and long-term holders’ SOPR, it is evident that a particular pattern in this onchian metric may be reoccurring. During last year’s market crash, the market experienced a period in which the short-term holders realized losses constantly.
Near the end of this period, a massive rise in LTH-SOPR scared many retailers of the long-term holders. A large amount of these coins were also deposited into the exchanges. However, it seemed turned out to be a bear trap because the bottom was in, and the market rallied to a new ATH.
Now, the same pattern is in play again, but this time, the massive spike in LTH SOPR was because the Bitfinex hacked coins moved after a long time. Either way, considering the STH-SOPR, the bottom seems to be near if it is already in.
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