Bitcoin’s Price Trend and Potential Correction
Bitcoin’s price has been on a bullish trend throughout the year, consistently reaching higher lows and highs. As an investor, you may be wondering if a correction is likely to happen in the short term or if the current trend will continue.
Analysis of the Daily Chart
Looking at the daily chart, it is clear that the price has been showing strong bullish momentum in recent months. However, the market is currently testing the $38K resistance level and has yet to break convincingly.
If a bullish breakout occurs, there will be little resistance for the price to reach the next key level around $41K.
On the other hand, there is also a possibility of a pullback in the coming weeks, indicated by a bearish divergence in the relative strength index between recent highs. In this case, potential targets would be the $34K and $30K levels.
Analysis of the 4-Hour Chart
Analyzing the 4-hour timeframe provides a clearer view of recent price action. It is evident that a rising wedge pattern has formed in the last couple of weeks. Considering this bearish reversal pattern and the strong resistance level around $38K, there is a considerable likelihood of a correction.
However, if the pattern is broken to the upside, which could happen in the coming days, the price could surge rapidly toward the $41K area.
Analyzing Bitcoin’s On-Chain Metrics
Bitcoin Active Addresses
The rally in Bitcoin’s price has attracted attention to the crypto market once again. To make informed investment decisions, it is important to analyze fundamental metrics of the network.
The Bitcoin active addresses metric, which counts the total number of unique active addresses involved in transactions, has been increasing since the price rebounded from the $16K zone in November last year.
Currently, the number of active addresses is approaching its all-time high of over 1.1 million, last seen when the price was above $60K in 2021. This indicates a bullish divergence between network activity and price, suggesting a potential continuation of the bullish trend in the coming months.
Hot Take: Bitcoin’s Price Trend and On-Chain Metrics
Bitcoin’s price has been on a bullish trend, with potential for further upside if a breakout occurs. However, there is also a possibility of a correction given bearish indicators and resistance levels. On-chain metrics, such as active addresses, show a positive divergence and suggest continued bullish momentum. As an investor, it is important to monitor both technical analysis and on-chain metrics to make informed decisions about Bitcoin.
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