Crypto Quill

After a thrilling ride towards $71K, Bitcoin encountered heightened selling pressure, leading to a slight bearish rejection. However, the cryptocurrency finds support in a robust region that could pave the way for renewed bullish momentum in the short term. Let’s delve into the technical analysis, on-chain insights, and potential scenarios for Bitcoin’s price movement.

Technical Analysis: Daily Chart

Bitcoin recently surged towards the significant resistance region around $72K-$74K. This price range has consistently halted upward attempts in recent months. Simultaneously, the substantial 100-day moving average (MA) at $66K acts as crucial support. The 100-day MA, accompanied by notable demand, may prevent further selling pressures. Currently, Bitcoin’s price is confined between the 100-day MA and the $72K resistance, awaiting an impending breakout to establish a robust trend.

Technical Analysis: 4-Hour Chart

On the 4-hour chart, Bitcoin reached the upper boundary of a multi-month descending wedge after a surge to $72K. However, significant supply within this range caused bullish momentum to fade, resulting in a slight rejection and sideways consolidation. The cryptocurrency now forms a smaller wedge pattern near the upper boundary of $70K. A breakout above this wedge could signal a prolonged bullish trend, with the key $74K resistance as the target. Currently, Bitcoin’s price remains within the narrow range defined by the wedge pattern, awaiting a decisive move.

On-Chain Insights: Realized Price of New Whales

Whales, influential participants in crypto markets, hold substantial positions that impact prices. Analyzing their profitability provides insights into market sentiment. The realized price of new whales has consistently supported Bitcoin during its recent bullish trend toward the all-time high (ATH) of $74K. Even during the recent rejection from the ATH, the realized price of new whales played a crucial role in supporting Bitcoin’s surge. Currently, this realized price (approximately $62.8K) serves as a key short-term support for Bitcoin buyers.