Bitcoin’s price is showing little signs of recovery after a recent drop, indicating a negative outlook in the short term. Technical analysis reveals that the price has been consolidating within a tight range on the daily chart, with a bearish trend indicated by the break of the 200-day moving average. However, the oversold signal from the RSI suggests a potential retracement in the near future. On the 4-hour chart, the price has been ranging between $27,500 and $25,000, with a possible retest of the $30K zone if the resistance level is breached. On-chain analysis reveals that the short-term holder spent output profit ratio (SOPR) has dropped below 1, indicating that short-term investors are selling at a loss, a behavior typically observed in bear markets.
– Daily chart shows consolidation within a tight range and bearish trend signal from the break of the 200-day moving average.
– RSI indicates an oversold signal and potential retracement in the short term.
– 4-hour chart shows price ranging between $27,500 and $25,000, with a possible retest of the $30K zone if resistance is broken.
– On-chain analysis reveals short-term holder SOPR dropping below 1, indicating selling at a loss and bear market behavior.
– Recovery of the SOPR above one could signal a bear trap and potential change in market sentiment.
Hot Take: Bitcoin’s price is facing challenges in its recovery following a recent drop. While technical analysis suggests a potential retracement in the short term, on-chain analysis indicates bearish behavior from short-term investors. The market’s ability to break resistance levels and the recovery of the SOPR metric will be crucial in determining the future direction of Bitcoin’s price.
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