According to CryptoPotato, Bitcoin's price rally has been on pause for the past few months as the market consolidates. However, this situation is expected to change soon, either positively or negatively. A technical analysis by TradingRage reveals that Bitcoin's price has been consolidating within a large descending channel on the daily chart. The channel's midline recently rejected the price to the downside, and the market is once again testing the $60K level. If this level breaks, there is a high likelihood that the channel will also break down, potentially leading to a significant drop towards the $52K support zone.
The 4-hour chart provides a clearer picture. The price recently tested the channel's midline but was decisively rejected. Today's activity is particularly revealing, as the price has been dropping aggressively. The Relative Strength Index (RSI) also indicates values below 50%, suggesting that momentum is currently favoring sellers. If the $60K level breaks to the downside, the situation could worsen.
An on-chain analysis by TradingRage shows that as Bitcoin's price struggles to continue its uptrend and record a new high, bears are seemingly preparing for a further decline. The exchange reserve metric and its 30-day standard moving average are rising, which is typically considered bearish. This indicates that investors are depositing their coins on exchanges to sell them. The rising exchange reserve metric, which has climbed above its 30-day moving average, is contributing to the recent correction. This supply from the spot market is one of the factors contributing to the recent correction.