According to CryptoPotato, Bitcoin's price has been in a consolidation phase for the past few weeks following its inability to surpass the $75K mark. However, this trend may be on the verge of changing. On the daily chart, Bitcoin's price remains confined between the $60K and $68K levels, with no significant breakout on either side. In recent days, however, the bulls have made substantial strides, pushing the Bitcoin price closer to the $68K mark. A breakout above this level could potentially trigger a continuation.
Conversely, a breakdown below the $60K level could have disastrous consequences, potentially causing the price to plummet to as low as $52K in a short time. The 4-hour chart reveals a shift in the price structure following a retest of the $60K support zone. The market is making higher highs and lows, pushing towards the $68K resistance level. The Relative Strength Index has also climbed above the 50% mark, suggesting that momentum is favoring a rally towards $68K in the short term.
While Bitcoin's price shows signs of recovery, market participants are questioning whether the bull market will persist. Some may even be seeking an explanation for why the price rally halted at $75K. The 30-day moving average of the Bitcoin miner outflow metric, which tracks the number of transactions sent from Bitcoin miners' wallets, could provide some insight. Increases in this metric are typically linked to high selling pressure. It's clear that miner outflows surged rapidly in January and February, contributing to the price correction. However, this metric is now declining as outflows from miner wallets decrease. If this trend continues, the market is likely to ascend towards higher prices soon.
Miyuki