Bitcoin’s price has finally climbed back above the $100K mark but is yet to create a new record high. However, judging by the current price action, it is quite likely to do so soon.
Technical Analysis
By Edris Derakhshi (TradingRage)
The Daily Chart
On the daily chart, the asset has been rising since rebounding from the $91K support level. Yesterday, the price broke above the $100K level and closed above it on the daily timeframe. If bitcoin is able to hold above the $100K level, a rally higher and a new record high would be imminent.
The 4-Hour Chart
Looking at the 4-hour chart, the price is behaving just as expected in an uptrend. Since the beginning of the year, new highs and lows have been forming, indicating the start of a new rally.
The market is currently pulling back to the $100K level, but it will likely rebound from it and continue higher in the coming days. Yet, if this level is lost, deeper correction toward the $91K level would be expected.
On-Chain Analysis
By Edris Derakhshi (TradingRage)
Exchange Reserve
While the BTC price has been consolidating around the $100K level, market participants were wondering whether the bull market is over. Yet, as the underlying dynamics suggest, there is still sufficient demand that would push the price higher.
This chart presents the Bitcoin exchange reserve metric, which measures the amount of BTC held in trading platforms. As evident, investors have been withdrawing their BTC from exchanges at a significant rate. This indicates that there is still an enormous buying pressure on aggregate, which would likely lead to higher prices in the coming weeks.
