Highlights
Bitcoin’s (BTC) price has responded favorably to enhanced macroeconomic factors, surging back to the $85,000 threshold for the first time since April 2. This upswing follows a turbulent phase where BTC briefly fell under $80,000.
As optimism reignites, there are renewed calls for a potential surge toward the $100,000 milestone. However, despite the positive sentiment, a swift return to above $100,000 seems unlikely. Here’s why.
Bitcoin Recovery May Encounter Challenges
One indicator suggesting that Bitcoin’s price may face hurdles on its way to retesting $100,000 is the Stablecoin Supply Ratio (SSR). The SSR is a crucial on-chain metric that assesses the purchasing power of stablecoins in relation to Bitcoin.
A decline in the SSR figure denotes heightened buying power and greater bullish potential. In contrast, a rising SSR indicates diminished stablecoin supply and weaker buying capability.
Data from CryptoQuant shows that the Bitcoin SSR has increased to 14.42. If this trend persists, BTC might struggle to achieve significant price gains, as the elevated reading signifies low buying momentum.
Resistance Anear $97,000
In addition to the SSR, the In/Out of Money Around Price (IOMAP) is another gauge suggesting that Bitcoin’s price may continue to fluctuate around $85,000.
The IOMAP is an on-chain metric that indicates how many addresses are making profits (in the money) or losses (out of the money) based on their entry price compared to the current price of the cryptocurrency.
It also reveals potential support or resistance zones. Large “in the money” areas below signify substantial support.
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Conversely, high-volume “out of the money” areas above suggest potential resistance. As per IntoTheBlock, significant resistance for Bitcoin is found between $96,155 and $98,719.
In this price bracket, 1.48 million addresses show 1.19 million in unrealized losses. Therefore, if Bitcoin’s price approaches this area, it could encounter a sell wall that may impede its upward momentum.
BTC Price Outlook: Consolidation Ahead
From analysis on the daily chart, CCN noted that Bitcoin’s price achieved its first successful breakout this month. The chart reveals that the coin has been trading beneath a declining trendline since January.
In January, it faced rejection at $106,364. By February, it struggled to surpass the resistance level at $99,269.
In March, it also encountered challenges rising above the $88,757 barrier. However, BTC has now risen past the $83,564 resistance, confirming this upward trend by also breaking above the 200-day Exponential Moving Average (EMA).
Nonetheless, the Chaikin Money Flow (CMF) has reversed its trend, signaling that buying pressure may be waning. If this remains unchanged, Bitcoin’s price could continue to oscillate between $78,208 and $90,137 in the short term.
However, if buying momentum increases, this target could rise accordingly. BTC may rally to $98,629 in that case, reaching near the 0.786 Fibonacci level.
If the broader market conditions improve, the cryptocurrency might achieve a new all-time high around $109,447. Conversely, should BTC fall below the 200 EMA, this prediction could be rendered invalid, leading to a decline toward $70,828.
Disclaimer:
The information presented in this article is intended for informational purposes only. It should not be viewed as financial advice. We make no guarantees regarding the completeness, reliability, or accuracy of this information. All investments carry risk, and past performance does not assure future results. We suggest consulting a financial advisor prior to making any investment decisions.
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