Bitcoin’s price has recently encountered support around the significant $60K price level, signaling the beginning of a period of sideways consolidation correction. Despite this correction, buyers are setting their sights on reclaiming the $73K threshold in the mid-term, with hopes of propelling the price towards a new all-time high.
A closer examination of the daily chart reveals that Bitcoin’s price has entered a mid-term corrective phase following a notable surge towards the all-time high of $73K. The consolidation has extended towards the crucial support region, marked by the 0.5 ($62K) and 0.618 ($59.5K) Fibonacci retracement levels. In this region, demand currently surpasses supply, leading to increased buying pressure that halted the ongoing retracement and triggered a reverse towards the $66K threshold.
Despite this reversal, the price seems to have settled into a mid-term period of sideways consolidation between the support region of $60K and the substantial resistance of $73K. This consolidation phase is likely to continue until a breakout occurs, with the prevailing outlook remaining bullish. There is potential for the price to breach the upper boundary of this range and set a new all-time high.
4-Hour Chart Analysis and Market Uncertainty
Delving into the 4-hour chart, a significant rejection near the $73K resistance region led to a multi-day decline towards a crucial support region around $60.5K. This support level aligns with the dynamic support of the ascending channel’s upper boundary. However, the price is currently exhibiting a sideways consolidation movement after touching the channel’s upper trendline, introducing a sense of uncertainty into the market.
It is important to note that the recent decline may be attributed to profit realization among market participants, a behavior typical during healthy bullish trends. Such corrections allow the market to rest and gather buying power, with Bitcoin anticipated to resume its ascent towards the $73K threshold once this consolidation phase concludes.
Exchange Whale Ratio and Market Volatility
The “Exchange Whale Ratio” serves as a measure of the ratio between the top 10 significant inflows and the total inflow volume on cryptocurrency exchanges. Elevated values of this metric indicate significant funds from prominent players, commonly known as “whales,” being transferred into exchanges. Currently, the Exchange Whale Ratio has surged alongside the price’s period of sideways consolidation and uncertainty.
Following a notable increase in whale activity within the markets, a period of volatility typically ensues, often leading to a short-term decline and the formation of a local dip. On an hourly basis, the whale ratio metric has once again reached its peak level, suggesting potential increased volatility in Bitcoin. This could result in a possible drop back to the $62K-$63K range, which previously acted as a support level.
It is essential to monitor this ratio closely, as changes in its patterns could potentially lead to fluctuations in Bitcoin’s price. Whales selling off amidst the rapid rise in BTC price could pave the way for a healthy correction, ensuring the stability and sustainability of the market in the long run.