Bitcoin Surging But Likely To Consolidate Before Breaking $74,000: Analyst
2024年3月22日 - 7:00AM
NEWSBTC
After capitulating on March 19, Bitcoin recovered on March 20.
However, while the crypto community expects more rapid gains, even
above the all-time highs of around $73,800, Willy Woo, an on-chain
analyst, thinks the coin will likely consolidate in the
days ahead. SOPR Peaked At An Unusually High Level: Profit-Taking?
Taking to X, Woo listed several on-chain metrics, some of which,
while supporting prices, are countered by others that might slow
down the uptrend. At the top of the list, the analyst notes how the
Spent Output Profit Ratio (SOPR) reading is printed out.
Related Reading: Leading The Pack: Solana Captures Nearly 50% Of
Global Crypto Attention The SOPR is used to measure the
profitability of Bitcoin transactions. When it is, it suggests that
more BTc being moved around are in green. While this reading has
risen in the past few trading weeks, how it peaked is a
concern. In Woo’s assessment, there is likely profit-taking
since the SOPR peaked at an unusually “high level.” Accordingly,
profit-taking translates to holders exiting, which means selling on
the spot, possibly resulting in a sideways consolidation. However,
the analyst finds reasons for optimism. Specifically, the recent
fall from the swing high, at around $73,800, was around 20%. This
dip tends to be more severe compared to historical cycles and, more
importantly, before halving. The analyst said it fell by over
30% in the last cycle before halving in 2020. Additionally,
the analyst views the current rise in “Macro risk signal,” a metric
that compares inflows to risky asset prices like Bitcoin and
crypto, as a positive sign. Even though it is rising and bullish,
it may “freak out” investors, shaking out some before prices rally
to new levels. Bitcoin To Consolidate, Altcoins To Pump?
What’s happening to Bitcoin might also impact altcoins and leverage
traders. Specifically, the analyst thinks that altcoins will likely
pump as Bitcoin consolidates in a technically bullish
structure. Even so, by Woo’s assessment, the fact that
leverage ratios on perpetual swap bets haven’t been reset means
traders should be careful because of the expected volatility
tagging position adjustments. Related Reading: Fantom (FTM) Bull
Run: Can FTM Hit $2 After 20% Price Spike? While Woo is bullish,
predicting possible choppy price action in April, traders are
bullish. Considering the recent wave of institutional demand,
Halving might drive prices higher in the coming sessions.
Presently, BTC bulls have reversed losses of March 19. The coin is
trading above the 20-day moving average. Optimistic traders look at
$73,800 as the short- to medium-term target. Feature image from
DALLE, chart from TradingView
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