Bitcoin Sellers Running Out Of Coins As Dominance Hits 3-Year High

Crypto analyst Rekt Capital has provided some form of optimism for Bitcoin investors, suggesting that the massive sell pressure on the flagship crypto is almost over. This comes amid a significant surge in Bitcoins dominance. Bitcoin Seller Exhaustion Is At Its Peak In an X (formerly Twitter) post, Rekt Capital mentioned that the sell-side volume has reached and even dramatically eclipsed Seller Exhaustion levels seen at previous price reversals to the upside. The analyst added that Bitcoin hasnt seen this level of sell-side volume since the Halving event in April earlier this year.  Related Reading: VanEck CEO Compares Bitcoin Adoption To Gold, Reveals Why Price Will Touch $350,000 This undoubtedly presents a bullish development for the flagship crypto since Bitcoin is bound to witness a massive reversal with the sell pressure almost over. This is already happening, as Bitcoin has rebounded in the last 24 hours, following its drop below $50,000 for the first time since January.  Rekt Capital also suggested that Bitcoin could rebound to as high as $62,550 in the short term as it looks to fill the CME gap, which is currently between $59,400 and $62,550. He noted that the odds favor Bitcoin filling this gap since the crypto token has filled all of the CME Gaps it has created over the past several months.  Crypto analyst Skew also commented on the massive sell-side volume that Bitcoin recently experienced. He explained that this happened because Bitcoin failed to hold above $70,000 following its July price rebound. The analyst added that there is no actual chaos yet, suggesting there was no need to be worried about the recent price correction.  With seller exhaustion at its peak, there is also the likelihood that Bitcoin has found a bottom and that this could be the final correction before the bull run kicks into full gear. Veteran trader and analyst Peter Brandt noted that Bitcoins decline since the halving means it has now achieved a price drop similar to the one during the 2015 to 2017 Halving bull market cycle.  BTC’s Dominance Hits 3-Year High Amid the market turmoil, data from Coinglass shows that Bitcoins dominance recently hit its highest level since April 2021. This rise has been largely due to the Spot Bitcoin ETFs, which have caused new money to flow into the Bitcoin ecosystem. Meanwhile, altcoins have had to battle for capital from existing retail investors who continue to divest their money between several crypto assets.  Related Reading: Dogecoin Open Interest Sees Sharp 24% Drop, Where Does Price Go From Here? Crypto analysts like Roman have suggested that Bitcoins dominance will likely continue to rise for now, as he predicted that the flagship crypto will continue to suck up all the liquidity until later this year. He expects Ethereum and other altcoins to continue trading sideways during this period.   At the time of writing, Bitcoin is trading at around $56,000, up over 10% in the last 24 hours, according to data from CoinMarketCap. Featured image from Cointribune, chart from Tradingview.com

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Analysts warn of further Bitcoin downside Could BTC revisit $42K?

Despite the gloomy outlook, Bitcoin could prevent more downside pressure if it manages to remain above the $51,000 mark.

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US govt $590M Silk Road Bitcoin transfer to Coinbase unlikely to be sold Analyst

The government could also be looking to custody or trade the Bitcoin, based on a recent partnership with Coinbase Prime.

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Bitcoin Whales Participate In $588 Million Selloff: Is There More To Come?

On-chain data shows the Bitcoin whale entities have sold approximately $588 million in the cryptocurrency during the past week. Bitcoin Whales Have Made Large Selling Moves Recently As pointed out by analyst Ali Martinez in a new post on X, the BTC whales have sold around 10,000 BTC over the last seven days. The indicator of relevance here is the “Supply Distribution” from the on-chain analytics firm Santiment, which tells us about the total amount of Bitcoin that a given wallet group currently holds. Related Reading: Only 66% Of Ethereum Holders In Profit Despite 21% Price Jump The addresses or investors are divided into these cohorts based on the number of tokens that they are carrying in their balance right now. A holder with 5 BTC, for instance, is put inside the 1 to 10 coins group. In the context of the current topic, the whale cohort is of interest, which typically includes the addresses holding between 1,000 and 10,000 coins. At the current exchange rate, this range converts to $58.8 million at the lower end and $588 million at the upper one. Clearly, the investors belonging to the group would be among the largest in the market, so the cohort can be considered to have some influence. As such, the behavior of the whales can be worth keeping an eye on. Now, here is a chart that shows the trend in the Supply Distribution for this Bitcoin group over the past few months: As displayed in the above graph, the Bitcoin supply held by the whales has observed a significant decline recently. More specifically, the investors belonging to the cohort have removed a combined 10,000 BTC from their wallets during this selloff, worth about $588 million right now. From the chart, it’s visible that the sharpest selling came during the crash that BTC saw earlier, but these whales have also offloaded significant amounts in the recovery rally that has occurred over the last few days. So far, the Supply Distribution of the cohort has shown no signs of a reversal, so it’s possible that the whales are still in net selling mode. Naturally, this could slow down the asset’s recovery efforts. Nothing is set in stone, though, so the indicator could be used to monitor the coming days to see which direction these humongous investors really take. A net accumulation spree would suggest a renewal of confidence among the large hands and could pave the way for a further rise in the Bitcoin price. Related Reading: Bitcoin Investors Again Show Extreme Fear As BTC Slips To $59,000 In some other news, BTC has been forming a symmetrical triangle pattern recently and is closing in on its apex, as the analyst has explained in another X post. “Bitcoin is showing a symmetrical triangle on the lower time frames,” notes Martinez. “A sustained close outside the $59,000 – $59,530 range could trigger a 4.80% move for BTC.” BTC Price Bitcoin has struggled to put together bullish momentum in the last couple of days as its price has slumped to $58,800. Featured image from Dall-E, Santiment.net, charts from TradingView.com

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German govt shifts additional 3K BTC in 1 hour

The latest transactions by the German government follow outcries from MPs to stop the sell-off and protect the country from the risks of the traditional financial system.

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Social Media Screams Sell As Bitcoin Crashes To $54,000: Buy Signal?

Data shows users on social media platforms have been calling to sell Bitcoin after its latest crash, a signal that contrarian traders may be waiting for. Bitcoin Sentiment On Social Media Has Turned Quite Bearish According to data from the analytics firm Santiment, social media is showing historic levels of FUD amid the market drawdown. The indicator of interest here is the “Social Volume,” which basically tells us about the degree of discussion around a given topic or term that users on the major social media platforms are currently participating in. This metric works by going through posts/threads/messages on these platforms to look for mentions of the keyword. The indicator then counts up the number of posts that contain at least one such mention. Related Reading: Bitcoin Traders Sink Into Fear As Price Crashes Below $58,000 The reason the Social Volume doesn’t simply count up the mentions themselves is that mentions alone don’t contain any information about if the trend is being followed across social media as a whole. Sometimes, for example, mentions can be high for a topic, but most of them could be limited to niche circles (that is, inside a few posts). The Social Volume naturally wouldn’t spike in this case, but it would when users across the platforms are making posts about the term. Now, what the analytics firm has done here is that it has applied terms related to sentiment to Social Volume, to differentiate between discussions related to positive and negative sentiments. Here is the chart shared by Santiment that shows how the Social Volume for negative and positive sentiments has changed alongside the recent Bitcoin volatility: To discern the sentiment, the analytics firm has chosen terms such as buy, bottom, and bullish in the case of positive sentiment, and sell, top, and bearish for negative sentiment. From the graph, it’s visible that the Social Volume for the latter type of keywords has observed a huge spike alongside the plunge in the Bitcoin price. This would imply that a large amount of bearish posts have popped up on social media. The indicator has also spiked for terms pertaining to positive sentiment, but clearly, the scale has been lesser than the one for bearish terms. In fact, the latest ratio between sell and buy calls has actually been the largest observed in the year so far. Thus, it would appear that social media users as a whole are feeling FUD towards Bitcoin. This may actually be a positive development for the cryptocurrency, however, as its price has historically been more likely to move in the opposite direction to what the crowd expects. Related Reading: Why Did Bitcoin Plunge Under $58,000? On-Chain Data Says This As is apparent in the chart, buying calls had spiked on a few occasions following price plunges in the past month, but this optimism had only led to a continued decline for the asset. With the latest crash, sentiment appears to have finally flipped, with Bitcoin traders starting to give up. “For bold traders, this is a window that some may wish to be a true contrarian and buy into the crowd’s anger and frustration,” notes Santiment. BTC Price Bitcoin had briefly slipped under the $54,000 level during the plunge, but the asset appears to have bounced back to $55,400 since then. Featured image from Dall-E, Santiment.net, chart from TradingView.com

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Why Did Bitcoin Plunge Under $58,000? On-Chain Data Says This

Bitcoin has observed a crash below the $58,000 level today. Here’s what could be a potential cause for it, according to on-chain data. Bitcoin Long-Term Holders Have Just Taken Large Profits As pointed out by an analyst in a CryptoQuant Quicktake post, the Bitcoin long-term holders harvested a large amount of profits during the latest price drawdown. Related Reading: These Are The Altcoins In Buy Zone, Analytics Firm Reveals The on-chain metric of interest here is the “Spent Output Profit Ratio” (SOPR), which basically tells about whether the BTC investors are selling/transferring their coins at a profit or loss. When the value of this indicator is greater than 1, it means the holders as a whole are realizing a net profit with their selling right now. On the other hand, the metric being under this threshold implies the dominance of loss-taking in the market. In the context of the current topic, the SOPR of a specific segment of the user base is of interest: the long-term holders (LTHs). This cohort includes the investors who have been holding onto their coins since more than 155 days ago. The LTHs are considered to be the resolute side of the market, as they rarely sell regardless of whatever may be going on in the wider market. As such, the times that they do sell can be all the more noteworthy. It would appear that the recent Bitcoin market conditions have managed to break even these diamond hands, as the below chart for their SOPR suggests. As is visible in the above graph, the Bitcoin LTH SOPR has seen a high density of spikes above the 1 mark during the past day. This would suggest that these HODLers have moved some coins that were previously carrying significant profits. More particularly, the indicator hit a value of more than 10 during a lot of these spikes, implying that this group realized profits equal to over ten times the losses during those transactions. As the LTH SOPR spikes came just before BTC’s descent towards the levels under $58,000, it would seem possible that this profit-taking push from these normally-resolute investors was at least in part behind the crash. Another indicator, the Bitcoin Spent Output Age Bands (SOAB), has revealed the breakdown of these LTH transactions. From the chart, it’s apparent that the most active LTH segment during this selloff was the 5-year to 7-year group, meaning that most of the coins sold were previously dormant between 5 and 7 years ago. Related Reading: Crypto Analyst Says Next Bitcoin Target Is $78,700 If BTC Breaks This Resistance It’s hard to say why these old entities have suddenly decided to sell after sitting out a whole cycle, but if this is the start of a selling spree from them, then things might get even worse for Bitcoin. BTC Price Bitcoin had very briefly slipped under the $57,000 level during the latest crash, but the asset appears to have made some recovery since then, as it’s back at $57,700. Featured image from Dall-E, CryptoQuant.com, chart from TradingView.com

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Bitcoin will crash to $50K, 10x Research warns

According to 10x Research, Bitcoins potential drop below $50,000 is linked to dwindling buy flows and accelerating sell flows.

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Mt. Gox prepares for repayments on Bitstamp, executes test transactions

Another wave of Bitcoin could be flooding the market as Mt. Gox prepares to continue creditor repayments. Will 99% of the Mt. Gox creditors really sell their Bitcoin?

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German govt was rushing to sell Bitcoin to maximize liquidity: Arkham CEO

Using five different crypto exchanges suggests that the wallet sought to maximize liquidity on each order book and sell Bitcoin as soon as possible.

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Over 36% of Mt. Gox Bitcoin distributed to creditors, but whales keep accumulating

Bitcoin whales continue accumulating, despite the potential sell pressure from Mt. Gox creditors, which could see 99% of investors selling.

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Mt. Gox repayments will only cause Bitcoin sell pressure among paper hands Analyst

Only the holders with the least conviction will be selling Bitcoin on the Mt. Gox repayment news, according to popular on-chain analyst ZachXBT.

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Bitcoin Recovery Stalls As HODLers Apply Selling Pressure

On-chain data shows that Bitcoin long-term holders have potentially been selling recently, something that may explain BTC’s continued bearish momentum. Bitcoin Exchange Inflow CDD Has Registered Huge Spikes Recently As an analyst in a CryptoQuant Quicktake post explained, old cryptocurrency tokens have recently been deposited in large quantities in centralized exchanges. The on-chain metric of interest here is the “Exchange Inflow Coin Days Destroyed (CDD).” A “coin day” refers to a quantity that 1 BTC accumulates after staying dormant on the blockchain for 1 day. Related Reading: Bitcoin Crash Forced Weak Hands Into Largest Loss-Taking Since 2022 Lows: Report When a coin that had been sitting still inside a wallet is finally moved, its coin days counter naturally resets back to zero, and the coin days it had been carrying before the move are said to be “destroyed.” The CDD keeps track of the total amount of coin days being reset in this manner across the network. In the context of the current topic, though, the general CDD isn’t the one of focus, but rather the Exchange Inflow CDD, which only keeps track of the coin days being destroyed through transactions into wallets connected to exchanges. Now, here is a chart that shows the trend in the Bitcoin Exchange Inflow CDD over the past month or so: As is visible in the above graph, the Bitcoin Exchange Inflow CDD has registered some spikes of considerable scale this month. This would imply that many dormant coins have recently seen deposits into exchanges. Generally, spikes in the CDD correlate to movement from the long-term holders (LTHs), as these HODLers tend to accumulate large amounts of coin days. Therefore, the recent spikes in the Exchange Inflow CDD suggest that these diamond hands have been transferred to exchanges. Holders make transactions into exchanges when they want to use one of the services these platforms provide, which can include selling. The chart shows that the spikes earlier in the month had come when Bitcoin had plunged towards its lows, implying that the selling pressure from this cohort may have played a role in the crash. The latest spike, larger in scale than the others, has come while BTC has been trying to start a recovery rally from these recent lows. So far, BTC has had no luck, suggesting that the selling from the LTHs has potentially been holding the coin back. Related Reading: Chainlink Traders Capitulate After 10% Plunge: Bottom Here? It remains to be seen how the Exchange Inflow CDD behaves in the coming days and if any potential further spikes would impede Bitcoin in its path to recovery. BTC Price At the time of writing, Bitcoin is trading at around $57,900, up more than 4% over the past week. Featured image from Dall-E, CryptoQuant.com, chart from TradingView.com

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Bitcoin Like A Spring Waiting To Uncoil, Analyst Explains Why

An on-chain analyst has explained how Bitcoin is sitting like a coiled spring right now, a state the asset doesn’t usually stay in for too long. Bitcoin Short-Term Holder Sell-Side Risk Ratio Has Declined Recently In a new post on X, analyst Checkmate has discussed the recent trend occurring in the Sell-Side Risk Ratio for the Bitcoin short-term holders. The Sell-Side Risk Ratio here refers to an indicator that tells us about how the absolute profit and loss being locked in by the investors compares against the BTC Realized Cap. The Realized Cap is basically a measure of the total amount of capital that holders as a whole have used to purchase their coins, as determined by on-chain data. Related Reading: Bitcoin Not Overvalued Yet, Says CryptoQuant CEO: Heres Why Thus, the Sell-Side Risk Ratio, which takes the ratio between the sum of profit and loss with this initial investment, provides info about how the profit or loss-taking from the investors looks like relative to their cost basis. When the value of the indicator is high, it means the holders are realizing a large profit or loss right now. Such a trend may follow some sharp volatility in the asset’s price. On the other hand, the metric being low implies that investors are only selling coins close to their break-even level. This kind of trend could suggest profit or loss-takers in the market have become exhausted. In the context of the current topic, the entire market’s Sell-Side Risk Ratio isn’t of interest, but rather that of only a specific segment of it: the short-term holders (STHs). These investors are typically defined as those who acquired their coins within the past 155 days. The below chart shows the trend in the metric for this cohort over the past decade: As is visible in the graph, the Sell-Side Risk Ratio for the Bitcoin STHs had shot up to a very high level when the rally towards the new all-time high (ATH) had occurred earlier in the year. Historically, the STHs have shown to be the fickle-minded hands of the market, who sell easily at the sight of any FOMO or FUD in the sector. As such, it’s not surprising to see that these investors had ramped up their profit realization alongside the rally. Related Reading: Bitcoin Has Solid On-Chain Cushion Below $68,900: Stage Set For Fresh Rally? Since this peak, though, the indicator has gone through a steep decline as the price of the cryptocurrency has been stuck in endless consolidation. Following the drawdown, the metric has now returned to relatively low levels. It would appear that as the tight sideways movement has occurred, sellers among the STHs have seen exhaustion. “Bitcoin is coiled like a spring, and it usually doesn’t sit still like this for long,” notes the analyst. With the asset’s price surging to $71,000 in the past day, it’s possible that this unwinding may already be here. BTC Price Bitcoin has enjoyed an increase of around 3% in the past 24 hours, which has now taken its price to $70,900. Featured image from Dall-E, checkonchain.com, chart from TradingView.com

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Bitcoin Selloff: German Govt Offloads Another $67 Million As Price Wobbles

In a continued effort to liquidate its substantial Bitcoin holdings, the German government has once again engaged in significant transactions involving BTC, according to data from blockchain analytics platforms Arkham Intel. This morning, the Federal Criminal Police Office (BKA) executed nine transactions involving a total of roughly 2,786 BTC. German Govt Continues Its Bitcoin Sell-Off Arkham Intel’s data shows that four of them are internal transfers while five transactions were direct transfers to crypto exchanges and market makers, suggesting an intent to sell. The five potential sales amount to 1,095.339 BTC worth approximately $67 million. Specifically, the BKA made two 125 BTC transfers, each worth approximately $7.7 million, to well-known crypt exchanges Bitstamp and Kraken. An additional transaction involved a minute test transfer of 0.001 BTC to Flow Traders, a leading market maker. This small transaction was soon followed by a much larger transfer of 345.338 BTC to the same entity, strongly suggesting preparation for a substantial sell order. Related Reading: Heres Why The Bitcoin Bottom Is In, New Highs Imminent: Crypto Expert Another noteworthy transfer of 500 BTC was directed to an enigmatic address tagged as 139Po. This address has seen previous activity linked to the German government but remains shrouded in mystery, speculated to be another sale point. These transactions form part of a broader trend observed since last week. Just a day prior, on June 25, the government had disposed of 400 Bitcoin worth $24 million on Kraken and Coinbase, as well as 500 BTC to address 139Po. This is in addition to significant movements earlier last week: $130 million worth of BTC were transferred to exchanges on June 19 and $65 million on June 20. Counterbalancing these outflows, the government received $20.1 million back from Kraken and $5.5 million from wallets associated with Robinhood, Bitstamp, and Coinbase. Related Reading: Will Bitcoin Have A Red Monday, Green Week? Analyst Sets $63,500 Target Currently, the German government’s holdings amount to 45,264 BTC, valued at around $2.8 billion. This makes Germany one of the top nation-state holders of Bitcoin, trailing only behind the United States, China, and the United Kingdom, which hold 213,246 BTC, 190,000 BTC, and 61,000 BTC respectively, according to data from Bitcoin Treasuries. BTC Price Hangs Above Critical Level The pattern of large-scale disposals by the German government has contributed to fluctuations in Bitcoin’s market price, which has experienced a decline of approximately 6% since the onset of these transactions. Bitcoin’s value briefly fell below the $60,000 threshold following the announcement from Mt. Gox about disbursing approximately $9 billion worth of Bitcoin and Bitcoin Cash starting in July. Market analysts and investors are also keenly observing these governmental actions as the sell-off seems to continue at a slow pace. This strategic liquidation by the German government arrives at a pivotal juncture for market sentiment, with Bitcoin prices teetering just above critical support levels. Should the daily trading price close below the $60,000 threshold, it could potentially trigger a more pronounced downturn in Bitcoin’s price, exacerbating market volatility and uncertainty. At press time, BTC traded at $61,451. Featured image created with DALL·E, chart from TradingView.com

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Is Mt. Gox A Worry For Bitcoin? Crypto Analyst Weighs In

Bitcoin outflows from the Mt. Gox exchange have occurred in the past day, making some worry about potential bearish effects. Heres what an analyst thinks. Mt. Gox Has Made Several Bitcoin Transactions In The Last 24 Hours During the past day, several movements from wallets associated with the bankrupt cryptocurrency exchange Mt. Gox have been [...]

The post Is Mt. Gox A Worry For Bitcoin? Crypto Analyst Weighs In appeared first on Crypto Breaking News.

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Bitcoin Retail Investors Are Dumping Amid Jump To $67,000, Why This Is Good For Price

The Bitcoin price recovery above the $67,000 level has triggered a round of selling, but it is not from the usual camp of large investors selling. This time around, it is the small-time traders who are offloading their bags and putting selling pressure on the price. However, this is not an entirely bad thing given that, historically, such selling has been bullish for the Bitcoin price. Bitcoin Retail Are Dumping Their Bags In a report on X (formerly Twitter), the on-chain data tracker Santiment revealed an interesting trend among small-time Bitcoin investors. As the price of Bitcoin rallied past $67,000 over the weekend, these small wallets took this as the time to sell and secure profit. Related Reading: Cardano Whales Return To The Table, Increase Massive Holdings By 10% These wallets are those holding below 0.1 BTC on their balances. This means that at the high end, these wallets are holding an average of $6,000. In the space of one week, Santiment notes that their collective holdings had dropped 0.46%. #Bitcoin is dancing just above $66.1K as small traders continue to #liquidate their holdings despite the #crypto bounce over the past week. Historically, small wallets dumping their coins to larger wallets is an encouraging and #bullish sign for $BTC. https://t.co/wlz4XPhfMD pic.twitter.com/dTJAy5G6pL Santiment (@santimentfeed) May 19, 2024 Selling among smaller wallets is not new, but at this level, it could have a significant impact on the price. However, compared to when whale and sharks sell their BTC holdings, retail investors selling is usually bullish for the price. This is because as the smaller traders sell, the BTC is picked up by the larger traders, who are usually longer-term holdings. As blockchain agency Crynet explains in a response to Santiment: While small traders divesting might seem concerning, it’s often a bullish signal. Historically, this redistribution to larger holders indicates stronger hands in the market. Let’s see how this plays out. Bullish Sentiment Rises Among Investors The selling by small Bitcoin traders comes amid a jump in bullishness. As Santiment reported in a previous post, bullishness among Bitcoin investors has now jumped to a 4-month high. The last time that investors were this bullish was back in January 2024 when the price of BTC had jumped above $45,000. Related Reading: Crypto Analysts Reveal Sub-$1 Altcoins Set To Outperform In The Bull Run Bitcoins weighted sentiment is now sitting at a value of 0.99, and although this is still lower than its January high of almost 1.8, it remains one of the highest among large caps. Currently, only the Chainlink (LINK) weighted sentiment is higher after rising to a new one-year high of 1.829. The crowd’s sentiment has shifted toward #Bitcoin after the surprise bounce above $66K Wednesday (and now above $67.2K). Additionally, #Chainlink is seeing its most #bullish sentiment in over a year. #FOMO staying low will help these rises continue. https://t.co/TcEPBdS9Oh pic.twitter.com/czvE1mOgId Santiment (@santimentfeed) May 17, 2024 The Ethereum weighted sentiment is currently sitting at a low -0.44, while XRP and Binances BNB are sitting at around -0.37. This suggests that bearishness continues to dominate among these assets while crypto investors look to Bitcoin to lead the market. At the time of writing, the BTC price is still trading at a high price of $66,900. The largest cryptocurrency by market cap is seeing a 6.78% increase in the last week and a small decline of 0.5% in the last day, according to data from Coinmarketcap. Featured image created using Dall.E, chart from Tradingview.com

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Buy Or Sell Bitcoin? Quant Reveals What Leading Metric Says

A quant has explained what a potential leading Bitcoin indicator could say about whats next for the cryptocurrencys price. Bitcoin Coinbase Premium May Hold The Answer To Where BTC Goes Next In a CryptoQuant Quicktake post, an analyst has talked about the trend currently taking place in the Bitcoin Coinbase Premium. We can use the [...]

The post Buy Or Sell Bitcoin? Quant Reveals What Leading Metric Says appeared first on Crypto Breaking News.

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Bitcoin Rejected At Descending Resistance Again Is $78,600 Still In Play?

Bitcoin is facing a crucial test as it struggles to break above key resistance levels while holding just above critical support. The market remains stuck in a tight range, reflecting growing indecisiveness among traders and investors. Uncertainty has become the new normal, with macro conditions and political developments continuing to cloud sentiment. Related Reading: Whales Dump 760,000 Ethereum in Two Weeks Is More Selling Ahead? US President Donald Trump has added further volatility to the mix, unsettling financial markets with unpredictable policies and newly imposed tariffs. His erratic behavior has only intensified the fragile mood, pushing risk assets like Bitcoin into deeper consolidation. Despite brief rallies, Bitcoin has once again failed to break above descending resistance, according to crypto analyst Carl Runefelt. This rejection, paired with declining trading volume, is a sign that buyers may be losing strength. Runefelt warns that if volume continues to dry up and BTC remains stuck below key levels, the bearish target of $78,600 remains a strong possibility. While bulls are defending support zones for now, the lack of momentum is raising red flags. Unless Bitcoin can reclaim higher ground soon, the odds of a deeper correction will continue to grow making the coming days crucial for determining the markets next direction. Bitcoin Down 25% from January ATH As Bears Tighten Grip Bitcoin is now down 25% from its January all-time high, and bulls are struggling to regain control. After repeated attempts to reverse the trend, BTC continues to hold above the $81,000 level a key support zone but has failed to reclaim the $86,000 mark, which is necessary to confirm any serious recovery. The inability to push higher has weakened market confidence, and bulls now find themselves in a difficult position. Macroeconomic uncertainty and fears surrounding escalating trade wars, especially under U.S. President Donald Trumps unpredictable policies, have added to market volatility. These factors continue to favor the bears, and the pressure on high-risk assets like Bitcoin remains intense. With broader financial markets under stress, bullish sentiment in the crypto space is fading quickly. Panic is beginning to set in for some investors as selling pressure shows no sign of slowing. However, theres still a sliver of optimism among market watchers who believe that a bounce could follow once key resistance levels are reclaimed. Runefelt recently shared insights pointing to BTCs failure to break above descending resistance a bearish sign. He also noted that trading volume continues to decline, a sign that market participation is thinning out. This lack of volume often precedes large moves, and in this case, the bearish target of $78,600 remains firmly on the table if bulls fail to reclaim momentum. For now, the market remains on edge. Bitcoins ability to hold above $81K and attempt a move past $86K will be critical in determining whether a recovery is possible or if the next leg down is about to begin. Related Reading: Chainlink Consolidates In Triangle Pattern Is A 35% Breakout Imminent? Technical Details: Key Levels To Hold Bitcoin is currently trading at $83,500 after several days of choppy, volatile price action that has left traders uncertain about the markets next direction. The recent swings between key levels have highlighted the indecision among both bulls and bears, with neither side able to take full control. For bulls, the immediate challenge is to reclaim the $85,000 level, which aligns with the 4-hour 200-day moving average (MA). A successful move above this mark would be an encouraging signal of short-term strength. Beyond that, the next key level is $86,000, which is where the 4-hour exponential moving average (EMA) sits. Reclaiming this zone would help shift momentum back in favor of the bulls and potentially set the stage for a recovery attempt toward $90,000. Related Reading: Whales Offload 200M Cardano During March The Start Of A Trend? However, the most critical level in the short term is support at $81,000. This price zone has acted as a strong floor in recent weeks, and losing it would likely trigger further downside pressure. As macro uncertainty and market-wide volatility continue, bulls must defend this support while working to reclaim the MAs above. The coming sessions will be crucial in defining whether Bitcoin can recoveror slide deeper into correction territory. Featured image from Dall-E, chart from TradingView

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This Bitcoin Metric Foreshadowed Recent Price Drops, Quant Reveals

A quant has pointed out how a Bitcoin metric may have detected selling pressure in the market, and therefore, the subsequent price drops, in advance. Bitcoin CDD Registered Spikes Before Recent Price Plunges In a new post on X, an analyst has discussed about how the Coin Days Destroyed (CDD) on-chain indicator may be used to identify selling pressure in the market early. A “coin day” refers to the quantity that 1 BTC accumulates after staying still on the blockchain for 1 day. When a token stays dormant for a while, it naturally accumulates some number of coin days, and once it’s finally transferred on the network, its coin days counter resets back to zero. Related Reading: XRP Whales Are Active: Heres Where They Are Sending Coins The coin days that this token had been carrying prior to this movement are said to be “destroyed” by the transaction. The CDD keeps track of the total number of such days being reset across the network on any given day. Now, here is a chart that shows the trend in the CDD for Bitcoin over the last couple of months: The pattern that the indicator has followed alongside the BTC price in the past two months | Source: CryptoQuant As displayed in the above graph, the Bitcoin CDD observed a large spike just a few days ago. Whenever this metric’s value shoots up, it means that a large amount of coins previously dormant are now on the move. Such transfers are generally correlated with the long-term holder whales, who are large entities who carry their coins for significant periods, and thus, accumulate a large number of coin days. Often, when these dormant entities finally break their silence, it’s for selling-related purposes. As such, spikes in the CDD can be an indication that the HODLer whales have decided to do some selling. In the chart, the quant has highlighted the major spikes that the indicator observed during the last two months. It would appear that following the onset of such spikes, the asset’s price has generally gone on to witness some bearish action. The aforementioned spike from a few days ago, too, has proven to be bearish for the asset so far as it occurred when Bitcoin had recovered towards $67,000, and the price has since erased this recovery. It would appear that some of these diamond hands had looked at this surge as an exit opportunity. Related Reading: 85% Of Altcoins In Opportunity Zone, Santiment Reveals Last month, the CDD had seen two spikes even larger than this recent one. These spikes had occurred near what continues to be the top for the rally so far. Thus, the selling pressure from HODLers may have played a role in this top and the subsequent drawdown that followed. Given the relationship that this metric has appeared to have held with the Bitcoin price, it may be worth keeping an eye on it, as it may continue to indicate the onset of selling pressure in the near future as well. BTC Price Bitcoin has continued its bearish trajectory during the past day as it has now slipped towards the $62,300 level. Looks like the price of the coin has been going down over the last few days | Source: BTCUSD on TradingView Featured image from Kanchanara on Unsplash.com, CryptoQuant.com, chart from TradingView.com

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