Bitcoin’s price is currently going through a phase of consolidation and has reached the 100-day moving average of $26,922. However, two significant support areas ahead on its path could potentially halt the ongoing decline and trigger the next bullish rally.

Technical Analysis

By Shayan

The Daily Chart

During the consolidation correction stage, BTC dipped slightly below the middle trendline of the ascending channel and tested it as a pullback. However, the Bitcoin price continued the downtrend by printing small consecutive red candles and temporarily stalled at the 100-day moving average of $26.9K.

If it falls below the 100-day moving average, the lower threshold of the channel of around $24K and the 200-day moving average of $23K could be potential price targets.

On the other hand, if Bitcoin finds support at the 100-day moving average, an attempt to surpass the significant resistance level at $30K will be the most likely scenario.

The 4-Hour Chart

Analyzing the 4-hour timeframe, a flag pattern has been developed during the recent correction phase of the market. Bitcoin’s price is currently consolidating within this flag, forming lower highs and lower lows.

However, there is a substantial support area between the 61.8% ($23,923) and 50% ($25,274) levels of the Fibonacci retracement. These two well-known Fibonacci levels indicate potential targets for correction stages. Given the market situation, it is likely that the price will continue the correction leg until it reaches this critical support zone.

On-chain Analysis

The following chart demonstrates the SOPR ratio metric alongside Bitcoin’s price since the 2015 bear market. The SOPR ratio is measured by dividing the values of long-term holders’ SOPR values by short-term holders. It has consistently signaled long-term investment opportunities, as in the pr