Bitcoin price has not yet shown any signs of recovery as the market has failed to bounce off any support levels.
As a result, the situation may get even worse in the coming days.
Technical analysis
Edris Derakhshi
Daily chart
On the daily chart, the asset has been declining since the rebound from the $64,000 resistance level and the 200-day moving average, which are located in approximately the same area.
The market has also lost the $60K level and is currently breaking the $56K support zone. If this level is broken, further decline towards the $52K area will be inevitable in the short term. Since the RSI also shows a clear bearish tone in the market momentum, a decline seems likely.
4 hour chart
Looking at the 4-hour chart, there may still be hope for BTC. The asset is gradually declining within a descending channel above $56K. However, the market is currently testing the lower boundary of the channel. In case of a bearish breakout, an aggressive fall to $52K is very likely.
However, if the channel holds, investors can hope for a bullish breakout and subsequent retest of the $60,000 level.
Supply chain analysis
Edris Derakhshi
Short Term Bitcoin SOPR Holder
While technical analysis is a valuable tool for predicting short-term market movements, it may not be sufficient for understanding the market dynamics underlying trends.
This chart shows the Bitcoin Short-Term Holder SOPR, which measures the ratio of gains to losses made by short-term market participants. Values above 1 indicate profit realization, while values below 1 are associated with losses. So, to get a better idea of the overall health and sentiment of investors, the STH-SOPR is quite a useful indicator.
As the chart shows, the 30-day exponential moving average of the STH SOPR metric has been below 1 for some time now. This suggests that many short-term investors have been losing money during the recent price consolidation. Therefore, if this behavior continues, the resulting supply could exceed demand and lead to even lower prices in the coming weeks.
