Bitcoin prices have fallen recently following news of conflicts in the Middle East. But the market seems to have found its footing.
technical analysis
Written by Edris Derakhshi (TradingRage)
daily chart
The daily chart shows that the price recently fell below the $64,000 level and the 200-day moving average in the same area. However, the $60,000 support zone appears to be holding BTC, pushing it further towards the 200-day moving average.
If the market is rejected from the 200 DMA, there could be further declines towards the $56,000 level and even the $52,000 level.
Source: TradingView
4 hour chart
Looking at the 4-hour chart, it is clear that the market structure is undergoing a bearish shift, having broken below the bullish trend line a few days ago.
However, the market seems to have bottomed at $60,000 as the RSI also indicated an oversold condition. Therefore, everything depends on whether the price can break through $64,000 or whether the price will be rejected and fall further.
Source: TradingView
On-chain analysis
Written by Edris Derakhshi (TradingRage)
Bitcoin Net Realized Gain/Loss (NRPL)
Bitcoin prices have remained strong for more than half a year, with market participants still speculating whether a cycle top has formed or whether we will see a high in the near future. In this situation, it is useful to analyze Bitcoin’s Net Realized Gain and Loss (NPRL) metric.
This metric measures the net profit or loss realized by investors. A positive value indicates a net profit and a negative value indicates a net loss.
As is clear, the market has not yet shown a major crash and is only moving within a range, but NRPL has already fallen to levels last seen when the price was around $30,000. The bull market is just beginning.
Therefore, if other factors do not change significantly, we can conclude that BTC may be preparing for a new bull market in the coming months.
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Cryptocurrency charts by TradingView.
