Bitcoin Primed To Consolidate Before Price Movement

2021-1-27 01:51

Bitcoin remains dormant after experiencing a high volatility period. While some on-chain metrics have begun to turn bullish, the technicals point to more consolidation ahead.

Bitcoin Presents Ambiguous Outlook

With Bitcoin’s impressive bull run to a new all-time high of $42,000 on Jan. 8, the Adjusted Spent Output Profit Ratio (aSOPR) indicator rose to a value of 1.28. The behavior seen in this on-chain metric suggested that BTC’s uptrend had reached exhaustion.

What came next was a 31.60% pullback that pushed Bitcoin’s market value below $29,000.

According to Glassnode, Bitcoin’s downward price action helped the aSOPR reset for the first time since mid-December 2020, indicating that the recent corrective period has come to an end.

“Bitcoin’s aSOPR has reset… [meaning] that coins moving between investors per hour (24h MA) are, on average, no longer being sold at a profit,” Glassnode suggests. “In order for SOPR to go lower, investors would have to be willing to sell at a loss, which is unlikely given the current shape of the market.”

Bitcoin aSOPR by Glassnode

Nonetheless, Bitcoin continues to consolidate within a descending triangle on the 4-hour chart.

From a technical perspective, the recent reset of the aSOPR index may help Bitcoin rebound from the triangle’s x-axis to the hypotenuse at $33,500. But due to the significant resistance ahead, rejection may occur, pushing BTC back to the $31,000 support level.

BTC/USD on TradingView

The thesis about further consolidation holds when looking at IntoTheBlock’s In/Out of the Money Around Price (IOMAP) model.

Based on transaction history, roughly 1.40 million addresses had previously purchased over 860,000 BTC between $32,550 and $34,630. Such a significant supply barrier may have the strength to keep Bitcoin’s rising price action at bay.

In/Out of the Money Around Price by IntoTheBlock

It is worth noting that while resistance seems stiff, support looks weak. IOMAP cohorts show that the most significant demand wall underneath Bitcoin sits at $31,000. Here, approximately 224,000 addresses are holding nearly 250,000 BTC.

Therefore, only a 4-hour candlestick close above or below the $31,000-$33,500 range will determine where Bitcoin prices are headed next.

Moving past the overhead resistance could see it reclaim $40,000 as support and lead to higher highs. Meanwhile, slicing through the underlying support could trigger panic selling among investors pushing Bitcoin’s market value towards $22,500.

Disclosure: At the time of writing, this author held Bitcoin and Ethereum.

origin »

Bitcoin price in Telegram @btc_price_every_hour

Bitcoin (BTC) на Currencies.ru

$ 62257.31 (-0.01%)
Объем 24H $27.349b
Изменеия 24h: -1.64 %, 7d: 3.83 %
Cегодня L: $61924.07 - H: $62277.72
Капитализация $1248.498b Rank 1
Цена в час новости $ 32444.79 (91.89%)

price movement consolidate primed bitcoin

Источник: cryptobriefing.com

price movement → Результатов: 126


Фото:

Bitcoin is Getting “Squeezed” Between 2 Critical Levels; Volatility Imminent

Bitcoin’s price action has been rather lackluster ever since it saw its sharp decline to lows of nearly $28,000 just a few days ago The selling pressure that sent it down to these lows has since subsided, but bulls have been struggling to extend the momentum that first sparked this movement Where the entire market trends in the mid-term may depend largely, if not entirely, on whether Bitcoin can sustain the rebound seen in the […]

2021-1-25 21:00


Coinbase Whales Keep Buying Bitcoin as Price Rockets to New All-Time Highs

Bitcoin is in the process of consolidating after the cryptocurrency saw a push to all-time highs last night, which led it as high as $36,000 This movement came about suddenly and was quite surprising, but it didn’t last for long The rejection at these highs was not too grave, as BTC has been able to find some strong support within the lower-$34,000 region ever since There’s a strong possibility that it will consolidate here, as […]

2021-1-7 21:00


Фото:

Bitcoin’s Volume is at the “End of the Line” Signaling Volatility is Imminent

Bitcoin’s range-bound trading is showing no signs of letting up as the crypto continues trading sideways within the lower-$9,000 region It does appear to be laying the groundwork to make a massive movement Data suggests that this movement could be imminent in the days ahead, potentially setting the tone for which direction it trends next There are a few other factors that are likely to influence its near-term price action as well One analyst notes […]

2020-7-4 21:00


Фото:

Here’s Why Bitcoin’s Next Big Move May Occur in the Next 2 Days

Bitcoin and the aggregated crypto market have once again extended their multi-week bout of sideways trading The benchmark digital asset has continued trading sideways in the lower-$9,000 region, with most altcoin’s closely tracking its price action This may not last for too much longer, however, as one trend seems to indicate that BTC is gearing up to make a large movement in the coming one or two days As for whether this movement will favor […]

2020-7-3 21:00


Фото:

Bitcoin Indicator Shows Price Could Hit $7,100 as Resistance Mounts

Bitcoin has further extended its long-held bout of sideways trading as it hovers within the lower-$9,000 region It is continuing to flash some signs of weakness, however, as its price has been unable to garner any upwards momentum This weakness has caused the one indicator to suggest that the crypto could be positioned to see a swift movement to lows of $7,100 if it is unable to garner any heavy buying pressure This comes as […]

2020-7-1 21:00


дальше еще 77 новостей →

Партнеры Currencies.ru



Реклама на Currencies.ru

Самое свежее на Currencies.ru