Bitcoin’s Market Trend: Bullish Surge or Imminent Correction?
Bitcoin has been exhibiting a strong bullish trend, with buyers’ dominance pushing the price to a significant resistance level around $35K. This trend, evident from the start of 2023, has been marked by an ascending channel pattern of higher highs and lows. However, a temporary market correction seems plausible due to the rapid price surge.
On a daily analysis, Bitcoin’s upward momentum has seen it surpass its previous significant daily swing high at approximately $31.8K, leading to a new daily high of around $35K. Despite the strong demand, the price faces substantial resistance at $35K, slowing down the upward movement and triggering a corrective phase. Key support levels lie at the 0.5 Fibonacci retracement level at $30.9K and the previous swing high at $31.8K.
On-chain analysis reveals a surge in the Short-Term Holder Spent Output Profit Ratio (SOPR) metric, indicating selling pressure from short-term investors. While the $35K level poses a significant barrier, a breakout could stimulate substantial market demand. The situation warrants close monitoring due to the potential for increased volatility.
