Bitcoin’s price has failed to hold above the $100K mark, making investors worried that its historical run is coming to an end. Needless to say, conclusions of this kind are incredibly far-fetched, and the price is more or less flirting with the line.
Bitcoin Price Analysis
By Edris Derakhshi (TradingRage)
The Daily Chart
On the daily timeframe, Bitcoin’s price has dropped back below the key $100K level, as it failed to close above it. Yet, the market has quickly recovered from the flash crash witnessed a few days ago, and $90K remains intact.
The price is currently testing the $100K resistance zone once again, and with the market structure still bullish on this timeframe, it seems likely to rally higher in the coming weeks.
The 4-Hour Chart
A large ascending channel has been formed on the 4-hour chart, with the price gradually rising inside the pattern. Yet, the higher boundary of the formation has rejected the price lower, and BTC has consequently failed to keep above the $100K mark.
However, as long as the channel is not broken down, the cryptocurrency is likely to rise higher.
This is especially true if the market climbs above the pattern’s higher boundary, which could lead to an aggressive bullish continuation above the $100K level.
On-Chain Analysis
By Edris Derakhshi (TradingRage)
Exchange Whale Ratio
While the price chart demonstrates Bitcoin’s inability to stay above the $100K mark, the recent failure to continue higher could be driven by a number of things.
Analyzing the Exchange Whale Ratio could help find the cause.
The exchange whale ratio metric measures the activity of BTC whales by displaying the ratio of large deposits to exchanges to total deposits.
As the chart shows, this metric has dropped significantly over the last few weeks, indicating that the whales are not selling their coins aggressively anymore.
This could mean that the recent consolidation and halt in Bitcoin’s uptrend can be associated with a liquidation cascade and cooldown of the futures market rather than a shift in the spot market dynamics, which could have longer-term consequences.
The post Bitcoin Price Analysis: After Hitting $100K, What’s Next for BTC? appeared first on CryptoPotato.
