Investor profitability reached 91%, but high profit margins may increase sales! If Bitcoin bulls fail to maintain the $63,093 support level, the price is likely to fall to $60,348 in a few days. After breaking $65,000, Bitcoin$BTC
The (BTC) price may have encountered resistance. While this recent price rally indicates strong bullish momentum, historical data suggests that BTC could pullback before resuming its rally.
Metrics Show It's Time for a Break
Bitcoin’s price hit $65,497, a rally that many investors had been expecting at the beginning of September, contrary to the bear market predictions. However, according to Daily Active Addresses (DAA) data, BTC could fall before retesting $70,000.
Price DAA analyzes whether user engagement with the value of a cryptocurrency is increasing. If the price increase is accompanied by active addresses, it is considered a buy signal and could increase the value of the cryptocurrency in question.
The current Bitcoin price DAA is showing a decrease of 54.89%, which indicates that market participants are reducing their interaction with the coin and is a sell signal that the current rally may be weak.
Increased Profitability and Sales Pressure
Bitcoin’s performance affects the profitability of its holders. On September 16, 79.92% of Bitcoin holders were in profit, but this rate has now increased to 91.97%. According to the Historical In/Out of the Money (HIOM) indicator, when these levels are reached, many investors start taking profits, which can cause the price to fall.
For example, while the percentage of owners who were in profit in July was 93%, a few days later this rate dropped to 78%. A similar situation was observed on August 25 at 88.35%, after which the Bitcoin price dropped to 76.23%. If this situation repeats itself, BTC may experience a short-term decline.
Resistance and Support Levels
While the price is expected to make a positive return, the daily chart shows that Bitcoin’s bid to reach $69,000 has hit a snag. This suggests that the bears are trying to seize the bulls’ dominance. If the price breaks below $65,000, the $65,838 area will become a major resistance. However, buyers may try to prevent BTC from falling below the $63,093 support level.
The chart predicts that the price of Bitcoin could drop to $60,348 in a few days. On the other hand, if the price closes above $65,838, the trend could turn in favor of the bulls and the Bitcoin (BTC) price could rally towards $68,236.
