“Last week, the price of bitcoin was significant volatility, and unfortunately it was not a bull. Even though the price fell below $ 120,000, those who have more than 100 BTC are not discouraged, on the contrary. Despite this significant pressure from buyers, it is fair to think about the end of the current cycle. In the “Market Checking” section we are considering data […]”, – WRITE: Businessua.com.ua
Last week, the price of bitcoin was significant volatility, and unfortunately it was not a bull. Even though the price fell below $ 120,000, those who have more than 100 BTC are not discouraged, on the contrary. Despite this significant pressure from buyers, it is fair to think about the end of the current cycle. In the Market Check section, we look at blockchain data and technical data to see if BTC is theoretically on the bull market. Does BTC send negative signals that sellers Return themselves to control? We start!
Bitcoin returned to a significant level in blockchain again! A sharp fall in bitcoin turned the price to level the realized price of short -term owners (Orange line). Since September the price is already twice bounced from this level on the network . In fact, last time the price reached new ath over $ 126,000 :
A schedule showing the implemented price of short -term bitcoin owners. Source: Bitcoin Magazine Pro
If Average purchase price for short -term shares owner close $ 114,000 admits another purchase reaction, the price bitcoin can still reach Ath . However, if the price will fall below $ 110,000 possible Bear volatility . This often happens when the price falls below the orange curve.
The king of cryptocurrency returns to 128-day sliding average From a technical point of view, the price of bitcoin returns to 128-day sliding average (blue) that is close $ 113 500. Again, this level allowed several times recover Over the last weeks:
Different sliding medium used to Bitcoin. Source: Checkonchain
Since BTC is on an important technical level, completion of correction possible. If the decline continues, the price can move to 365-day sliding average (orange) at $ 100,000. Now Sliding average are bull so these indicators still give hope.
The index of fear and greed cryptocurrency returned to the extreme fear zone during collapse. At the end of last week the bitcoin falling caused extreme fear In the cryptocurrency market. Cryptocurrency (CFGI) of fear and greed, famous indicator Market moods returned to 24 (extreme fear). Market moods were as feverish as in April :
Graph of cryptocurrency indicators and greed. Source: Glassnode
I must say that Trump has revived Bad memories For investors, threatening China with significant new tariffs. Last time when Trump broke this topic, the price of bitcoin fell by more than 30% . We often hear that periods of fear in the financial markets are A good time for sales . But be careful as John Mainerd Keynes said: “The market can remain irrational for longer than you can remain solvent.”
The risk of falling bitcoin up to $ 100,000? From the beginning cycle of bovine market BTC price is traded above 350-day sliding average (Orange). This indicates that buyers have an advantage over Bitcoin. During Bear market 2022 The price is traded below the orange curve:
Gold -section factor indicator. Source: Bitcoin Magazine Pro
For several months BTC has developed between orange and green curves (a multiple of 1.6 from 350-day sliding average). If the price was held Ath in a chain for several months, she was hard to speed up much, as For example, at the end of 2024. In case the BTC continues blocked at $ 120,000 he can go back to 350-day sliding average . It is close $ 100,000 .
Also possible Bull scenario For the price bitcoin. If BTC recovers here, possible Acceleration to the green curve at $ 160,000. Just at this level and against a multiple of 2 350-day sliding average (red) BTC, usually completes its growth .
Key points to remember The rapid movement of last week, it seems, did not change the bitcoin impulse. Technical analysis and analysis of blockchain indicate that further growth of bitcoin is possible. The king of cryptocurrencies has the potential to bounce off the average price of purchase of short-term owners, as well as from 128-day sliding average. However, if the bitcoin remains unstable, the return of up to $ 100,000 is not excluded. If bitcoin continues to follow gold, new historical maxima are still possible.
Source: Journalducoin.com
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