Bitcoin remains within a significant descending channel, yet the likelihood of an upward breakout towards a new high is strong. However, earlier this week, BTC struggled to decisively surpass the psychological barrier of $70,000.
The Daily Chart:
In recent days, the asset has shown an upward trend on the daily chart, following a bounce from the lower edge of the descending channel and the $60K support level.
However, the cryptocurrency faced resistance from the upper trendline of the channel, with the $68K support area now under scrutiny. Should this level hold, the path to a new all-time high for Bitcoin appears imminent. Conversely, a breakdown could lead to a correction back towards the $60K support level.
The 4-Hour Chart:
Examining the 4-hour chart, the price currently lingers near the $68K mark, lacking sustained upward movement. The Relative Strength Index hovers around the midpoint at 50%, suggesting market indecision persists.
In the event of a deeper correction, the midline of the broader channel and the $60K support area may serve as initial targets. However, breaching these levels could trigger a severe market downturn, potentially leading to an aggressive liquidation cascade.
On-Chain Analysis
Bitcoin Exchange Inflow – Spent Output Age Bands:
As bitcoin's bullish momentum appears to wane once more, examining investor behavior yields valuable insights. This chart illustrates Spent Output Age Bands of exchange inflows, indicating the proportion of deposits held for specific durations.
Observing the age band of over 6 months, indicative of long-term investors, there's no indication of aggressive selling pressure. Rather, long-term holders are profit-taking gradually, typical of a bullish trend.
Notably, the Spent Output Age Band for long-term holders has decreased more than during periods of lower prices, suggesting they anticipate higher prices before divesting their holdings. This reduction in supply could fuel further price upticks given sufficient demand.
