Bitcoin remains below $96K, consolidating after a surge in April. It’s still bullish as it stays above key support levels. Short-term charts show potential resistance at $95K and a potential dip towards $92K if support breaks. On-chain data suggests limited sell pressure and healthy profit-taking, with SOPR above 1.0. Promos from Binance and Bybit are noted.
Bitcoin has shown resilience, managing to stay just under the $96,000 resistance level after a notable surge in late April. At the moment, the cryptocurrency is trading within a narrow corridor, allowing the market to digest its recent leap. Although momentum has noticeably eased, there are still no clear signs pointing to a bearish reversal, which leaves room for further exploration of price levels.
From a daily perspective, Bitcoin is still entrenched in a bullish configuration, as it remains comfortably above the $91,000 support line, as well as the critical 100 and 200-day moving averages. Having broken through the $90,000 to $91,000 zone, the cryptocurrency is now gearing up to challenge the $95,000 resistance area, which interestingly aligns with the neckline from its previous period of consolidation.
However, the 100-day and 200-day moving averages have shown a bearish crossover near the $90,000 mark, which serves as the lone area of concern. That said, as long as Bitcoin maintains its position above these moving averages, the broader bullish outlook stays intact in the medium term.
When examining the 4-hour chart, Bitcoin appears to have found itself within an ascending channel. This pattern often indicates a potential local peak or at least a slowdown in momentum, particularly if the channel breaks to the downside. Currently, Bitcoin is testing the lower edge of this pattern in the vicinity of $94,000 to $94,500, which is functioning as support.
Failure to uphold this support could see the price retreating towards a key demand zone near $92,000. Conversely, if Bitcoin manages to reclaim the $96,000 mark, it could spark a renewed upward movement targeting $98,000 and potentially $100,000 in the near term.
On the on-chain analysis front, metrics paint a fairly positive picture with healthy profit-taking trends and limited selling pressure. The Spent Output Profit Ratio (SOPR) continues to hover above the 1.0 threshold, demonstrating that coins moving on-chain are predominantly being exchanged at a profit. Interestingly, SOPR has slightly recovered alongside the price, suggesting that despite recent gains, holders aren’t in a rush to sell at a loss—indicating strong market conviction.
Essentially, this trend behaviour typically paves the way for continuation rather than instant pullbacks, reinforcing bullish sentiment in the market. But it’s crucial to pay attention to developments as the landscape shifts rapidly.
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