Bitcoin Price Analysis: Can BTC Get Back on Bullish Track Despite Daily Close Below Important Support?

Bitcoin’s daily close was below $60K on the 21-day EMA and the 21 day EMA. This is a cautionary signal in the short term. BTC could be in a snapback scenario if it closes above these levels. However, we must wait for daily closes above them to validate.

Spot reserves jumped by 9435 BTC yesterday due to a high volume of inflows. Gemini saw a lot of inflows. Bitcoin’s current price is over $60K.

Chart by TradingView

Technical Outlook

Despite the weakness in the short-term, overall the trend is bullish. BTC rose 64% in one month, aided by high open interest and the leverage ratio close to peaking. This is a bullish signal as it flushes out leverage longs and prepares BTC for its next major move higher.

The overall market is more stable as long-term rallies are less frequent. This reduces the risk of larger drawdowns. As BTC is still below the $62K key downtrend line, it’s too early to confirm a technical top at $58.1K. BTC must make a higher high than $63.7K to confirm.

Strong support remains between $58.3K and $53K from a technical perspective and on-chain perspective.

Analysis of the On-Chain

Spot reserves rose by 9435 BTC yesterday but on-chain metrics still show no significant signs of aggressive distributions by long-term holders (LTHs), or miners.

Chart by CryptoQuant

The 1-to-3 month cohort continues to profit, primarily from younger coins and traders who have sold. Another record-breaking high was reached by the Mean Coin Age. The older cohorts on the other side, however, are holding steady. The ASOPR dropped back to 1, which means that the market overall is at breakeven. This level has been a support level in bull markets for Bitcoin. The ASOPR dropped below 1 during September’s liquidation, but then rebounded to above 1.

Chart by CryptoQuant

The miners are still building reserves and show no signs that they will be aggressive in distribution.

In conclusion

The market structure is healthier due to the current pullback in BTC’s price. This makes the bull run more durable. The stock market continues to move higher which makes it more attractive to resume risk-on trades, particularly as the dollar is still in a downtrend. Money is moving out of long-term bonds, and into risk assets.

The short-term risk of a flush out is still there as leverage at.18 remains high. It’s encouraging to see it trend lower over the past day.

Overall, the trend is bullish as LTHs continue to hold their BTC while miners and LTHs remain bullish.

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Marla Brooks

Marla Brooks – Financial Analysis My name is Marla Brooks, and I am the mainstream behind the”observednews.com”  for the powerful and most delicate insights into the latest activities in the financial analysis category. I started my journey as an independent financial consultant. I had approximately nine years of experience in this field. I am free soul so; my passion for exploring the world has taken me to the nations across the globe and given me the chance to report for a portion of the best news associations. Currently, I am a full-time editor as experienced in finance and started to use my abilities.

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