Bitcoin Price Analysis: BTC Enters Near-Term Pullback, Is Local Bottom Found?

BTC’s recent 46% rally from the lows at $39.6k has been very impressive as prices pushed above $50k, the September high at $52.9k, with higher highs being made. The above further validates the completion of the bear trap down to $39.6k. Bitcoin has been finding initial resistance as anticipated in the $57.1k to $58.3k, a major zone of technical and on-chain resistance. Chart by TradingView The $50k to $58.3k zone includes many buyers from earlier this year who acquired Bitcoin during the large run-up to $64.8k. Although many of these buyers panic-sold the lows at $30k, there are likely remaining holders looking to break even or realize a small profit at current levels, which indicates potential near-term selling pressure. Near-Term Cautious – Overall Trend Remains Bullish The near-term technicals are slightly cautious given the more than 45% rally, overbought conditions, slightly elevated open interest and funding rates, and light distribution on the chain. Historically, increasing open interest with funding rates trending higher along with rapid price appreciation have led to near-term pullbacks in the market. Additionally, spot inflows started to trend higher, causing spot exchange reserves to increase, indicating potential profit-taking. Chart by CryptoQuant Chart by CryptoQuant Chart by CryptoQuant Considering Bitcoin was approaching a significant resistance zone between $55k to $58.3k with elevated open interest and funding rates, the near-term risk of a pullback began to increase. As Bitcoin formed a local high at $57.8k, on-chain metrics began to show signs of light distribution from older coins, specifically the 3 to 5-year-old cohort according to the UTXO Age Distribution metric by CryptoQuant. This corresponded with a slight uptick in the Coin Days Destroyed Metric (increases when coins are spent after being held) along with an uptick in the LTH SOPR. The uptick in CDD is nowhere close to the aggressive distribution levels we saw in the later part of the 2017 bull market or even the beginning of the 2018 bear market. The current data is showing light distribution, which is expected after large rallies. This means some long-term holders were taking profits as BTC hit major resistance. At…

Source: Bitcoin Price Analysis: BTC Enters Near-Term Pullback, Is Local Bottom Found?

Buy Shiba Inu, Bitcoin, Ethereum and many more Coins!

Worlds Biggest Bitcoin Exchange And Altcoin Crypto Exchange In The World

Categorized as Bitcoin