As a researcher with experience in analyzing cryptocurrency markets, I find the current Bitcoin price action intriguing. The volatility around the $60,000 mark is not unexpected given the significant psychological impact of this level. The uptick on Sunday was encouraging, but the short-term outlook remains bearish due to the falling wedge pattern and persistent pressure from the overhead trendline.
This week, Bitcoin‘s price showed considerable fluctuation, hovering near the important $60,000 threshold. On Sunday, BTC experienced a 1.3% increase due to strong buying interest at its 100-day moving average, which served as a flexible base of support. However, the immediate projection indicates a bearish trend, marked by a declining wedge formation on the daily chart. The persistent selling pressure from the descending trendline has been pushing Bitcoin downward.
Will Bitcoin Price Hold $60000 Support?
The Bitcoin price has been fluctuating between two converging lines of a falling wedge formation for approximately two months. At the current moment, the BTC price stands at around $61,600. However, it is encountering resistance from the upper boundary of this pattern.
Despite the ongoing $60,000 support, the Bitcoin price has shifted course, leading to a ambiguous market atmosphere. If this sideways trend in pricing is met with additional supply pressure, the sellers could potentially push the asset down to the ranges of $56,500 to $53,100.
In Dominando Crypto’s latest findings, there’s been a noticeable trend among Bitcoin owners: those who have owned it for less than a month are increasingly disposing of their coins. The data shows that this group currently holds around 1.25 million BTC, which is significantly lower than the peak of 2.56 million BTC. This translates to approximately 1.31 million BTC being transferred out of these investors’ hands. These short-term holders now account for 6.4% of all Bitcoin investors and number around 3.42 million addresses.
Approximately 1.25 million bitcoins held by investors for less than a month are being sold, as of now. At its highest point, this group controlled around 2.56 million BTC. Consequently, about 1.31 million BTC have been distributed among them. These investors comprise roughly 6.4% of the total investor pool. The current number of their addresses is… (Note: This paraphrasing aims to convey the same information as the original text in a clearer and more conversational manner.)
— Dominando Cripto (@DominandoCripto) May 11, 2024
Dominando Crypto observes that the widespread circulation of Bitcoins is largely attributable to a limited number of addresses controlling substantial Bitcoin amounts, indicating the emergence of new large-scale traders in the market who favor short-term trading tactics. The significant selling off by these new major players could result in heightened market instability.
Nonetheless, in order for purchasers to reclaim authority over Bitcoin’s price movement, they need to surpass the resistance trendline. A possible breakout would intensify buying demand, propelling Bitcoin’s value towards reaching a new peak at $73,700.
Technical Indicator
- Exponential Moving Average: The 100-day EMA wavering around the $60000 level increasing the support strength of this level.
- Relative Strength Index: The daily RSI slope at 45% indicates a neutral to bearish sentiment among market participants.
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2024-05-12 21:53