Earlier wicks below $28,600 were quickly bought up, but Bitcoin still threatened to flip $29,000 to resistance on the day, as traders eyed a crucial support zone.
“Whilst the Bitcoin market is correcting, we still have the average transactor taking profits,” Checkmate, lead on-chain analyst at Glassnode, wrote in part of Twitter analysis.
“To me, this indicates that chips are still being taken off the table, and we don’t yet have a flush out of top buyers in full (like March).”
Checkmate added that he was waiting for realized losses to take control as a signal of “panic” by those who bought BTC as it crossed $30,000 this month.
An accompanying chart showed the Adjusted Spent Output Profit Ratio (aSOPR) metric, which captures aggregate profit and loss of on-chain transactions.
Bitcoin aSOPR chart. Source: Checkmate/Twitter
Some more optimistic takes remained, with analyst Matthew Hyland noting one-month lows in Bitcoin’s relative strength index (RSI) on daily timeframes.
RSI gives an insight into how overbought or oversold BTC/USD is at a given price level, and while still relatively high, such a reset and subsequent reversion can signal an inbound uptrend.
Elsewhere, popular trader and analyst Jelle continued to observe a copycat formation by BTC/USD, which neatly followed a price fractal from 2020.
This ultimately produced a so-called “Bart Simpson” pattern — a spike higher, followed by a plateau and subsequent retracement — only to then break out even higher later on.
“$28.800 acting as a bottom so far. If we can hold here for the next week or so – I see us breaking $30.000 soon after,” Jelle predicted.
BTC/USD chart fractal. Source: Jelle/Twitter
BTC price returns to “logical place”
With volatility returning to BTC/USD in recent days, John Bollinger, creator of the Bollinger bands volatility indicator, meanwhile called for caution.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
