Hey there! Based on the latest analysis, it seems like Bitcoin’s price might be headed for a deeper correction. Despite reaching new heights recently, the market has struggled to maintain momentum and has fallen back below $100k in the last few days. If this trend continues, we could see the price dip further towards the $90k and even $80k levels.
On the technical side, let’s take a look at what Edris Derakhshi from TradingRage has to say. He suggests that on the daily chart, Bitcoin has been steadily climbing for the past few weeks, breaking records with a new high above $100k. However, over the last few days, the market has struggled to maintain this upward trajectory, dipping as low as $92k.
This failure to hold onto gains suggests that we might see a deeper correction in the near future. Moving onto the 4-hour chart, we see that while there have been higher highs and lows within an ascending channel, the market has been rejected from the upper boundary near $108k. This rejection has led to a breakdown below the $100k level, with the RSI indicating bearish momentum.
However, the lower trendline is still holding strong, which could mean a quick rebound and continuation of the upward trend. But if this pattern breaks down, we could see a drop back towards the $90k level. Now, let’s switch gears and look at some on-chain analysis provided by Edris Derakhshi. Active address metrics can give us insights into the underlying market dynamics beyond just price action.
Specifically, looking at the 100-day moving average of active addresses, we see that there’s been a rapid recovery during the recent uptrend and breakout above $70k. However, this hasn’t reached its all-time high yet, indicating a divergence between price action and network activity. This suggests that if network activity doesn’t pick up soon and start making new records, we could see a longer period of correction for Bitcoin.
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Source
As per reported by cryptopotato.com
