The momentum of Bitcoin price is weakening, facing difficulties in maintaining the strong upward trend built in recent weeks. With the current price of $98,436, the king of cryptocurrencies is still hovering below the crucial resistance level of $100,000.
This stagnation, along with investor liquidation, raises concerns about the risk of a BTC plunge.
The Liveliness index of Bitcoin continues to rise despite the recent price stabilization. This indicates that long-term holders (LTHs) are liquidating their positions. LTHs, often considered the stable backbone of Bitcoin, are selling off assets to minimize potential losses due to concerns about further price declines.
If this trend continues, the selling pressure from LTHs could further exacerbate the downward price pressure. As LTHs are crucial to maintaining confidence in Bitcoin's value, their departure from the market suggests a lack of faith in the ability to sustain a strong price recovery. Such a shift in sentiment could accelerate the downward trajectory of BTC.
The macroeconomic momentum of Bitcoin also reflects the downward price trend. The Relative Strength Index (RSI) has dropped below, struggling to maintain above the neutral level of 50. The weakening performance of this technical indicator suggests that the strength of the upward price momentum has been fading in recent trading sessions.
The declining RSI signals that Bitcoin is at risk of losing its upward momentum. If this trend continues, it could further reduce market optimism and push the price lower. Traders and investors are closely monitoring the RSI for signs of potential reversal or continued deterioration.
Bitcoin is currently trading at $98,436, just shy of the crucial $100,000 resistance level that is essential for further growth. Flipping this level into support is necessary for BTC to maintain an upward trajectory and reach new highs. However, it has not yet found the necessary buying pressure to achieve this.
On the downside, the aforementioned bearish factors suggest that Bitcoin could drop to $95,668. If this critical support level is breached, the price could continue to decline further, with $89,800 as the next target. This scenario would mark a significant setback for BTC investors.
Conversely, if Bitcoin regains the $100,000 support level, it could rise to $105,000. Achieving this milestone would strengthen its position and set the stage for a potential return to the All-Time-High (ATH) of $108,384. To recover in this manner, the market needs to demonstrate renewed confidence and strong buying activity.
Disclaimer: This article is for informational purposes only and not investment advice. Investors should do their own research before making decisions. We are not responsible for your investment decisions.
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Minh Anh
According to Beincrypto
