Bitcoin’s price has maintained a horizontal range for the past couple of weeks. Before the next big move, the consolidation phase has primarily held within the range of $33,900 and $30,700.

Bulls attempted a breakout above the range on Monday; however, they failed at highs of $34,900.

The bears also had a go on Wednesday, causing a strong pullback below $30,000. Fear in the market rose to levels not seen in this bull market.

Supported by Ray Dalio’s comment from last night and Elon Musk’s status update on Twitter, which now only says “Bitcoin,” the price of the cryptocurrency shot up 15% to highs of $38,077.

Bitcoin’s Spent Output Profit Ratio (SOPR) is a robust on-chain indicator for gauging long-to-medium term market sentiments. The SOPR shot up significantly last week to levels not seen since the 2017 top.

The metric, nevertheless, touched the pivot value of 1 after Wednesday’s correction. In an uptrend, the market rejects values below 1 and vice-versa.

The ratio has started to pick-up again, suggesting strong hands.

Bitcoin’s peak price of $42,000 is the most critical resistance, beyond the all-time high market’s bullish expectations will rise considerably.

SIMETRI’s lead Bitcoin analyst, Nathan Batchelor, confirmed the same:

“If BTC reaches $42,000 then a massive inverted head and shoulders pattern will form, which points to $55,000. Additionally, bears failed to closed the daily candle under a large broadening ascending wedge earlier this week, signaling bulls appetite to test higher. Again, this pattern points to $55,000 as an upcoming target.”

Source: Crypto Briefing

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