Bitcoin is currently stabilizing around the $114,000 mark following a period of significant price fluctuations. The price movements exhibit varied signals across different timeframes. Analysis of the daily chart indicates that momentum is diminishing, while the 4-hour chart reveals a constricting pattern near resistance levels. Additionally, on-chain metrics suggest ongoing structural accumulation.
Technical Overview
By Shayan
Daily Chart Insights
The daily chart illustrates that Bitcoin has exited its upward channel but faces challenges in regaining higher price points. Currently trading close to $114K, it remains just beneath the 100-day moving average, which serves as a barrier to further gains. The Relative Strength Index (RSI) hovers around 50, indicating a neutral state with no clear signs of being overbought or oversold.
If bullish traders can push prices above this moving average level, attention will shift towards targeting the all-time high zone at $124K. Conversely, repeated failures to break through could lead to downward pressure on the market; key support exists at $104K due to a fair value gap and proximity to the 200-day moving average around $101K—this area represents critical support before any significant correction occurs.
4-Hour Chart Dynamics
The analysis from the 4-hour chart shows that prices are consolidating within an ascending triangle formation characterized by higher lows forming near $110K and resistance capped at approximately $114K. With an RSI reading of 55 suggesting slight bullish momentum favoring buyers, confirmation for breakout remains pending.
If buyers succeed in pushing past $114K with sufficient volume backing their efforts, we could see rapid movement toward levels between $118K and $120K. On the flip side, losing ground below either the ascending trendline or falling below support at $110K would undermine bullish sentiment and potentially lead back toward support at about $104k; thus far short-term trends hinge on reactions observed against this pivotal ceiling of resistance set at$114k.
On-Chain Evaluation
Status of Exchange Reserves
The reserves held on exchanges continue their sharp decline reaching multi-year lows—a curious trend given Bitcoin’s current all-time highs—indicating investors are transferring coins into long-term storage rather than keeping them available for trading purposes This reduction in liquid supply typically promotes price stability while setting up favorable conditions for potential upward movements when demand surges again .
However , declining reserves also imply reduced liquidity across exchanges in short term . Such conditions can heighten volatility surrounding critical levels , resulting sharper breakouts or breakdowns . Overall reserve trends bolster long – term bullish outlook yet do not eliminate risks associated corrections if buying fails reclaim resistances .
