Bitcoin Value Evaluation: Bitcoin's Bullish Trajectory Persists Despite Resistance at $98,000
Bitcoin's currently camping out just below the $96K resistance, taking a breather after its fierce rally in late April. The market's munching on those recent gains, keeping things fairly stable, albeit with a slight drop in momentum. No red flags signaling a major bearish attack just yet.
On the technical front, the daily chart shows BTC still rocking an bullish setup. It's holding strong above the $91K support and both the 100 and 200-day moving averages. After busting through the $90K-$91K range, it's testing the $95K resistance territory, which lines up with the neckline of its previous consolidation. Notable worry comes from the 100-day and 200-day moving averages' bearish crossover near the $90K level, but as long as Bitcoin maintains its grip above them, the medium-term bull run maintains its momentum.
The 4-hour chart paints a different picture. Bitcoin's been strapped inside an ascending channel lately, which generally signals a local top or a slow down in bullish vibes, especially if it breaks to the downside. It's currently testing the channel's lower boundary around the $94K-$94.5K realm, now providing support. If this doesn't hold its ground, the next safe haven lies around the $92K mark. Bullishness returns if it recaptures $96K, aiming for $98K and possibly $100K.
On the on-chain front, metrics scream 'bullish!' The Strong Hands Index indicates holders have a firm grip on their investments, with the Spent Output Profit Ratio (SOPR) still above 1.0, showing coins moving on-chain are doing so in profit. This suggests holders dim little interest in selling yet, supporting the belief that the rally isn't over.
Looking ahead, predictions hint at Bitcoin continuing its upward trend. The stock-to-flow model suggests a potential $400,000 price by the end of 2025, with many Institutions like Standard Chartered, Sina (21st Capital), Chamath Palihapitiya, and VanEck, predicting prices ranging from $120,000 to $500,000. On-chain indicators like the On-Balance Volume (OBV) and Whale Activity also support this optimistic outlook.
However, it's not all smooth sailing. The $95K and $105K levels are crucial resistances. Breezing past these could trigger further gains, but failing to do so might prompt a pullback within the ascending channel. As always, volatility and market sentiment could shape price movements significantly.
In the realm of cryptocurrency trading, the bullish setup of Bitcoin on the daily chart continues to hold, as it positions itself above the $91K support and both the 100 and 200-day moving averages, although the bearish crossover of these averages near the $90K level serves as a potential concern. The 4-hour chart, however, presents a different outlook, with Bitcoin currently testing the lower boundary of an ascending channel, which could indicate a slowdown in the bullish trend or a local top.
As for on-chain analysis, the Strong Hands Index and the Spent Output Profit Ratio (SOPR) suggest a continued bullish sentiment, with holders maintaining a firm grip on their investments and showing little interest in selling, supporting the belief that the rally is not over.
Looking forward, predictions in the finance and technology sectors indicate a continued upward trend for Bitcoin. Models like the stock-to-flow model suggest a potential $400,000 price by the end of 2025, while institutions such as Standard Chartered, Sina (21st Capital), Chamath Palihapitiya, and VanEck predict prices ranging from $120,000 to $500,000. On-chain indicators like the On-Balance Volume (OBV) and Whale Activity also support this optimistic outlook. However, the $95K and $105K levels have been identified as crucial resistances, and Bitcoin's ability to breach these could significantly influence future price movements.
