Bitcoin experienced a very volatile trading session yesterday, with prices fluctuating between $92,300 and $96,420 throughout the day. The cryptocurrency now hovers near the $93,000 mark, struggling to establish a clear direction in the short term. As market participants await decisive action, uncertainty increases over whether Bitcoin will maintain its bullish structure or face a deeper correction.
Related reading
CryptoQuant analyst Axel Adler recently shared valuable insights highlighting an important trend among short-term holders (STH). According to Adler, these investors continue to sell their coins at high-profit margins, capitalizing on Bitcoin’s recent upward momentum. While profit taking is a natural part of market cycles, the lack of sustained demand to absorb this selling pressure could challenge Bitcoin’s price stability.
If demand does not match the pace of active profit takingA local correction could occur, potentially leading to a fall in the price of Bitcoin. This delicate balance between profit-taking and market demand makes the coming days crucial in determining Bitcoin’s next move. Will buyers step in to support the price, or will selling pressure lead to a deeper retracement? Investors and analysts are watching closely as Bitcoin navigates this pivotal moment.
Wikipedia’s level of demand answers
Bitcoin has faced days of intense volatility as it struggles to break the psychological barrier of $100,000 while holding firm above the $92,000 support. The market is in a state of flux, with investors and analysts closely watching Bitcoin’s next move. Despite the uncertainty, Bitcoin’s resilience at these key levels highlights the ongoing battle between bullish and bearish forces.
Top analyst Axel Adler recently shared an insightful analysis on XThrowing light on the behavior of short term holders (STHs). According to Adler, STHs are actively selling their coins at high profit margins, taking advantage of recent price increases. While profit taking is a normal part of market cycles, the lack of sustained demand to counter this selling pressure can lead to a localized correction and potential price decline.
However, in the event of a price decline, STHs are unlikely to continue selling their holdings, as selling at a loss is often considered an unwise move in a bull market. This dynamic could provide Bitcoin with the breathing room it needs to stabilize at its key support levels, currently around the $90,000 mark.
Related reading
If Bitcoin successfully holds above $90,000, a period of consolidation around this level could lay the foundation for the next rally, potentially taking BTC to new all-time highs. The coming days will be crucial in determining whether Bitcoin continues its ascent or faces a temporary setback.
BTC holding above $90K
Bitcoin is trading at $93,800 after several days of selling pressure and market uncertainty. Despite holding above key support at $92,000, the loss of both the 4-hour 200 moving average (MA) and exponential moving average (EMA) is a short-term bearish signal. These indicators, often seen as measures of market momentum, suggest that Bitcoin may need additional demand to regain upward traction.
For the bulls to regain control and spark a fresh rally, Bitcoin must regain these critical levels. The 4-hour 200 MA at $96,500 and the 4-hour 200 EMA at $98,500 are necessary barriers. Successfully breaking above these thresholds and securing a decisive close beyond them will confirm the latest bullish momentum.
Related reading
If Bitcoin achieves this feat, the stage could be set for a massive rally in price discovery, breaking psychological barriers like $100,000 and paving the way for new all-time highs. On the flip side, failure to reclaim these indicators could signal extended consolidation or a potential retest of lower support levels.
Featured images from Dall-E, charts from TradingView
