Bitcoin Weekly Support Holds a Thread, What Comes Next?

During the past two months, Bitcoin underwent a major downtrend. The price of the number one cryptocurrency by market capitalization has fallen from an all-time high of $64,000 to its current levels of $34,100.

BTC with minor losses on the daily chart. Source: BTCUSD TradingView

After such a long bearish price movement, the general sentiment in the market seems to be tilting towards a pessimistic view. In the crypto community, some believe that the market has entered a range Bear But the bulls are still hoping to regain momentum.

Anonymous analyst Murfski has been following the recent price action and is more bullish after Bitcoin managed to close من Green weekly candle. In the coming days, the trader expects BTC to break through the highs of its current range at $35,000.

This might be a good opportunity to take a short position. This level is acting as a major resistance on the 7-day chart. if BTC price failed to close above it, The trader said that the first cryptocurrency by market capitalization could face another move to break H2 and open a good opportunity for a long position.

On the 4-hour chart, trader Josh Olzevic has registered Taurus spacing. However, Bitcoin was unable to break the local resistance below the 200-EMA and other indicators.

Source: Josh Olszewicz

Thus, investors should be careful. There is no clear direction for the price action and Olszewicz expects the outlook to improve if BTC recovers the upper zone of its current range.

(…) Things won’t get really fun unless we get >38K and start cracking the remaining accuracy levels we have left.

Did Bitcoin holders give up? Long-term and short-term carriers feel fear

Checkmate analyst believes that the market has Arrive Surrender levels driven by BTC miner migration out of China.

As mining fragmentation continues to fall off the network during the largest mining hardware exodus in history, it appears that the market for large-scale bitcoin owners has succumbed at lows once again. The market has made the absolute biggest losses in history as we explore the cross section of the hardest hit market.

This is the second market capitulation in the past two months. Checkmate estimates that $3.45 billion was lost during the event. In other words, a large part of the investors sold their coins at a loss, as the chart below shows.

Source: Glassnode Insights

In previous weeks, long-term (LTH) holders usually took advantage of capitulation events to increase their bitcoin holdings. The analyst said that the recent price action was different and created panic among long and short-term (STH) holders.

(…) As evidenced by volatility in LTH-SOPR, and deep surrender in STH-SOPR. STHs lost slightly less than in the March 2020 capitulation event. LTHs were willing to spend coins with an average cost of between $9.2k and $16.3k this week, which indicates a high degree of uncertainty.

Source: Glassnode Insights

In addition to declining institutional demand and higher selling pressure from bitcoin miners, the market can continue to move at its current levels. In the coming weeks, investors should expect further declines unless BTC price regains higher levels or a catalyst The event changes the dynamics.

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