Bitcoin Price Recovers, but Higher High Not Yet Reached
The Daily Chart
Over the past few weeks, Bitcoin’s price has been rising after bouncing back from the $40K support level. Currently, it is approaching the $48K resistance level again. The Relative Strength Index (RSI) is above 50%, indicating bullish momentum.
If the price breaks above $48K, a new all-time high could be reached in the coming months.
The 4-Hour Chart
Examining the 4-hour chart reveals more about recent price action. The price is currently testing the $45K resistance level, but momentum appears to be fading.
The RSI is showing an overbought signal, suggesting a consolidation or correction may occur before the market continues towards a higher high.
On-Chain Analysis
Bitcoin Short-Term Holders Spent Output Profit Ratio (SMA 30)
While Bitcoin’s price recovers, some network fundamentals are cooling down. This can be seen as a bullish signal due to decreasing supply.
The Bitcoin short-term holder spent output profit ratio (SOPR) chart demonstrates that many short-term investors have sold their coins and selling pressure is decreasing. If this trend continues, a sustainable uptrend can be expected in the short term.
Hot Take: Bitcoin’s Recovery Signals Potential for Higher Highs
Bitcoin’s price has recovered from a drop and is approaching key resistance levels. Technical analysis suggests that if it breaks above $48K, a new all-time high could be reached. On-chain analysis also indicates decreasing selling pressure, which bodes well for a sustainable uptrend in the short term. Keep an eye on Bitcoin’s price movements as it may be on the path to higher highs.
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