Bitcoin's price has been consolidating below the $60,000 level for the past few weeks. However, the asset reached an 8-day peak of nearly $58,500 earlier today, which might signal upcoming changes.
The Daily Chart
On the daily chart, the price recently rebounded from the $52,000 support level and has climbed back above the $57,000 mark. Currently, the market is likely to rise towards the $60,000 resistance level in the coming days. Meanwhile, the RSI is also climbing above the 50% threshold, suggesting a potential short-term uptrend.
The 4-Hour Chart
The 4-hour chart also shows a classic bullish price action pattern. The market has been declining in a descending channel but has recently broken above it. Based on classical price action, this pattern will result in a bullish rally, potentially leading to an uptrend towards $60,000 and even $64,000. Yet, to confirm this scenario, the price must hold above the $57,000 support level.
On-Chain Analysis
While Bitcoin's price has been consolidating, underlying market dynamics have changed significantly. Therefore, on-chain metrics can yield beneficial results. This chart shows the Bitcoin Exchange Whale Ratio metric, which measures the ratio of large transactions compared to overall deposits to exchanges. As the chart suggests, this metric has been surging during the recent consolidation, indicating many large transactions taking place. Some market participants are distributing their BTC while others are accumulating. While the effects of this shift on the price remain to be seen, a significant price move is probable.
A combination of technical and on-chain analysis points to a possible rise in Bitcoin's price to $60,000 and $64,000 in the near term, provided current levels hold.
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