Bitcoin price is showing clear signs of recovery, with the market reclaiming some key levels. Investors are now hoping that the correction phase is finally over.
Technical analysis
Author TradingRage
Daily chart
On the daily time frame, the price recently showed an impulsive recovery from the $56K support level, breaking several resistance elements. The 200-day moving average located near the $59K mark, the bearish trend line and the $60K resistance level were broken to the upside.
However, the $65K resistance level does not allow for further movement higher. Meanwhile, the RSI shows that the momentum favors the bullish move. It seems to be a matter of time before the market moves higher and even creates a new all-time high.
4 hour chart
Looking at the 4-hour chart, it is evident that the price has been making higher highs and higher lows after two false breaks below the $57,000 support level.
The price also broke the bearish trend line and the $60K level without hesitation. However, the market’s reaction to the $65K resistance level suggests that it may pull back to the $60K level before continuing its upward move.
Supply chain analysis
Author TradingRage
Bitcoin exchange reserve
With Bitcoin’s price finally recovering from below $60,000, analyzing investor behavior using on-chain metrics can reveal both the reasons for the recent recovery and what’s to come.
This chart shows the Bitcoin Exchange Reserve metric, which measures the amount of BTC held in exchange wallets. An increase in reserves indicates that investors are depositing their coins into exchanges to sell (most likely), while a decrease indicates hoarding by holders.
As the chart shows, the exchange reserve ratio has been falling rapidly in recent weeks, indicating that many large investors took advantage of the recent correction and bought the dip and are now withdrawing their coins for long-term storage. This supply reduction could lead to a sustained rally in the coming months.