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Bitcoin Price Analysis: BTC Risks Dropping Toward $80K if it Fails to Reclaim $100K Soon
As the cryptocurrency market continues to experience volatility, Bitcoin’s (BTC) recent failure to break above the $100,000 mark has sparked concerns about a potential drop in price. In this analysis, we will delve into the technical and on-chain metrics that could be influencing the asset’s performance.
From a technical perspective, the daily chart shows that BTC has failed to sustain its rally above the $100,000 level and has been correcting over the past week. While the $90,000 support zone has held the market, preventing it from dropping lower, the price has consistently failed to break above the $100,000 level and is instead getting rejected to the downside. This could lead to a deeper continuation below the $90,000 mark and potentially even lower towards the $80,000 area in the coming weeks if the price fails to reclaim this important psychological resistance.
The 4-hour chart provides an equally concerning picture for Bitcoin holders, as it has recently broken the ascending channel pattern to the downside. The lower boundary of the pattern has been retested twice alongside the $100,000 resistance level. However, both levels have held and pushed the asset lower, which could also lead to a drop towards the $90,000 mark and potentially even lower in the short term.
On-chain analysis provides a more nuanced view of the underlying dynamics driving Bitcoin’s price action. The long-term holder SOPR (SOPR) metric measures the ratio of profit realization by investors who have held their coins for over six months. As seen on the chart, the realized profit is relatively high, but has yet to reach the values previously seen when the market was consolidating below the $70,000 level.
This could be interpreted as long-term holders not yet feeling compelled enough to sell their holdings in large quantities, which would have a negative impact on the overall market. This lack of selling pressure could still lead to a potential rally higher in the coming weeks if it becomes clear that there is no significant profit-taking at these levels.
In conclusion, the technical and on-chain analysis suggests that Bitcoin may be at risk of dropping towards $80,000 should it fail to reclaim the $100,000 level soon. This has significant implications for investors who have been holding onto their positions in hopes of a continued upward trend.
Source: cryptopotato.com
