Bitcoin Price, If It Fails to Quickly Break Through $65,000, It Is Likely to Be Adjusted

The Bitcoin (BTC) price has recently surpassed $65,000, but it may have hit a wall. This recent price surge indicates strong bullish momentum, but according to historical patterns, BTC may retract before the uptrend continues. This on-chain analysis highlights the indicators supporting this prediction and what investors should expect in the short term. On-chain Indicators Say It's Time for a Breather The rise in Bitcoin's price to $65,497 is the opposite of the expected downtrend that investors anticipated in early September. However, according to the price daily active addresses (DAA) divergence, BTC may pull back before retesting $70,000. The price DAA tracks whether user engagement increases as the coin's value rises. When the price and active addresses rise together, it's a buy signal, and the cryptocurrency's value may increase. Currently, Bitcoin's price DAA has plummeted by -54.89%. This decline indicates that market participants have reduced their interaction with the coin. Therefore, the recent uptrend may be weak, which is a sell signal. Additionally, the coin's performance has impacted the profitability of its holders. On September 16th, 79.92% of Bitcoin holders were in profit. However, when comparing the various price ranges where profitable addresses are found based on the historical in/out of the money (HIOM) metric, currently, 91.97% are in profit. Historically, when this ratio has reached such levels, some holders have realized their gains, leading to a decrease in Bitcoin's price. For example, in July, the percentage of profitable holders was around 93%, but a few days later, it dropped to 78%. On August 25th, the ratio was 88.35%, and the subsequent Bitcoin price decline led to 76.23% being in profit. Therefore, if the current situation and history repeat, BTC may see a short-term decline. BTC Price Prediction: $60,000 Is Approaching While the price is expected to generate positive returns, the daily chart shows that Bitcoin's attempt to reach $69,000 has hit obstacles, indicating that the bears are trying to regain the upper hand. If the price falls below $65,000, the $65,838 area will become a crucial resistance zone. However, buyers will try to defend BTC from falling below the $63,093 support level. The chart below suggests that this defense may fail. Therefore, Bitcoin's price may decrease to $60,348 within a few days. On the other hand, if it closes above $65,838, the trend will tilt bullish, and Bitcoin could rise to $68,236.