Crypto Industry News:
At the time of writing this text, the price of Bitcoin is close to USD 46,000. Since its peak 7 days ago, the most popular cryptocurrency has already slipped by 25%.
However, some market analysts say the current situation is very favorable in the long term. Ki Young Ju claims that the cryptocurrency market is ruled by 3 large groups: institutional investors, whales and miners. So far, the latter seem to be winning the battle.
Glassnode noted that Bitcoin's Daily Spending Out Profit Rate (SOPR) saw a "full reset." It therefore offers a chance for potential increases.
The SOPR basically shows whether individual Bitcoins are making a profit or a loss at the time of the transaction. This key indicator turned negative for the first time since September 2020. In other words, investors are now moving BTC on average with a slight loss, suggesting that according to Glassnode the level of profit taking has declined.
Meanwhile, the popular trader Philip Swift, co-founder of the Decentrader trading platform and creator of the Golden Ratio method, also drew attention to the SOPR crash. He sees this as a potentially bullish BTC return coupled with last week's derivative funding rate reset as such events coincided earlier with the start of new uptrend.
Technical Market Outlook:
The BTC/USD pair has bounced from the low seen at the level of $43,121 and is currently trying to break higher above the level of $47,000. The next target for bulls is seen at the level of $48,021 - $48,335, but even if this level is hit, then the next most important target for bulls is the overbalance level located at $50,265. As long as the market trades below the overbalance level, the correction might develop. The intraday technical support is located at $45,710.
Weekly Pivot Points:
WR3 - $66,669
WR2 - $61,820
WR1 - $52,326
Weekly Pivot - $47,444
WS1 - $38,017
WS2 - $33,139
WS3 - $23,184
Trading Recommendations:
The bulls are still in control of the Bitcoin market, so the up trend continues and the next long term target for Bitcoin is seen at the level of $60,000. Any correction or local pull-back should be used to open the buy orders. This scenario is valid as long as the level of $41,125 is clearly broken.
