Bitcoin ($BTC ) has recently exhibited signs of a potential pullback, with technical indicators and market dynamics suggesting a short-term correction may be imminent.
A notable development is the formation of a double-top pattern around the $90,000 level, indicating a possible resistance point that could trigger a price decline before any further upward movement towards the $100,000 mark.
On-chain data further supports this outlook. The Spent Output Profit Ratio (SOPR) has surged to 2.86, the highest since late August, reflecting increased profit-taking by long-term holders. Additionally, a significant drop in active Bitcoin addresses—from nearly 1 million to 768,000—suggests waning market participation and potential weakening of bullish momentum.
Technical analysis reveals a bearish divergence with the Relative Strength Index (RSI) after BTC failed to sustain levels above $95,000. This divergence, coupled with a fair-value gap between $90,500 and $88,750 on the 4-hour chart, points to a possible re-test of these lower levels.
Despite these short-term bearish signals, the long-term outlook remains optimistic. Standard Chartered projects Bitcoin could reach $110,000–$120,000 by Q2 2025, driven by strong on-chain fundamentals and strategic reallocations from U.S. assets.
In conclusion, while Bitcoin's current market behavior suggests a potential pullback, the overall trend remains bullish. Investors should monitor key support levels and on-chain metrics to navigate the anticipated short-term volatility.
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