Bitcoin Sellers Foil A Bullish Breakout — But Here’s Why the Rally Isn’t Over
Despite sellers pushing Bitcoin down from a breakout attempt, on-chain metrics and chart patterns suggest the rally is not over.Summary
The Bitcoin price recently slipped over 1% to trade near $108,200 after sellers rejected a bullish breakout attempt near $114,000. However, analysis of on-chain data suggests this pause is likely temporary. The MVRV Z-Score shows a critical 'higher low,' indicating long-term holders are accumulating rather than capitulating. Furthermore, the Spent Coins Age Band metric shows sharp declines in supply movement from both long-term (365 days to 2 years) and short-term (7-30 days) holders, signaling selling exhaustion.
On the 12-hour chart, Bitcoin remains within a falling wedge pattern, which typically resolves upward. Although the price was rejected from the upper boundary, a subsequent doji candle signals indecision, often preceding a reversal. This is supported by a bullish divergence on the Relative Strength Index (RSI), where price made lower lows while RSI made higher lows. A confirmed breakout above $111,500 could lead to a rally toward $114,000 and potentially $124,200, provided support at $107,500 holds.
(Source：BeInCrypto)