Bitcoin's (CRYPTO:BTC) price has stabilised around the $56,000 support level following a recent downtrend, with signs of recovery evident on both daily and 4-hour charts.

Currently challenging the 200-day moving average and a bearish trendline, Bitcoin aims to surpass the critical $60,000 resistance zone.

Technical indicators suggest that reclaiming this level could signal a bullish reversal, potentially leading to a broader price recovery.

On-chain analysis, particularly the Short-Term Holder SOPR metric, indicates a decline in profit-taking among recent investors, hinting at a possible end to the correction phase and renewed optimism among market participants.