While notable developments in the crypto market are on the agenda, recent declines are causing fear and anxiety among investors. Bitcoin The price seems eager to fall further in the meantime. However, market fundamentals suggest otherwise. Bitcoin is down nearly 10% in the past week and is currently struggling to stay above $58,000.
Bitcoin Chart Analysis
On the daily chart Bitcoin It is consolidating at $60,000 after a rejection from the $64,000 resistance line and the key 200-day moving average located around the same price mark. The market is now likely to test the $56,000 support level. A Prize Pool Worth 21 Million TL Awaits You from BinanceTR! Participating and winning has never been easier.. You can sign up to BinanceTR from this link. Get your first crypto!
The RSI indicator has also dipped below the 50% level, suggesting a slight decrease in momentum. Therefore, if the price fails to hold the $56,000 level, further declines towards the $52,000 support zone are likely.
Looking at the 4-hour chart, it is clear that the market has not been able to return to the resistance level of $68,000, where it initially fell, as the price has rejected the resistance area of $64,000 to the downside. Based on the current situation, a retest of the $56,000 level seems quite possible. However, the cryptocurrency could recover from this level as the market structure is showing signs of weakness in the downtrend.
Remarkable Data
Bitcoin’s The price has been going through a long period of consolidation over the past few months, leaving investors wondering whether the market is experiencing an accumulation or distribution period. This chart shows the Bitcoin Exchange Reserve metric, which measures the amount of Bitcoin held in exchange wallets. It is assumed to be a proxy for supply, as these assets can be sold quickly.
As indicated in the chart, the Exchange Reserve data has been rapidly decreasing since the beginning of the consolidation, indicating that an accumulation phase is taking place. As Bitcoin reserves continue to decrease significantly, the probability of a supply squeeze that could lead to a new price rally increases significantly. However, futures market conditions also play a major role in price action and should be carefully evaluated before drawing any conclusions.
Disclaimer: The information contained in this article does not contain investment advice. Investors should be aware that cryptocurrencies carry high volatility and therefore risk, and should carry out their transactions in line with their own research.
