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Highlights
- The combined support of 100-day EMA and $60000 prevented the BTC price from a prolonged downfall.
- A bullish breakout from the falling wedge pattern will trigger a 15% breakout rally for Bitcoin.
- The intraday trading volume in Bitcoin is $13.9 Billion, indicating a 17.5% loss.
This week, Bitcoin price exhibited significant volatility, oscillating around the crucial $60,000 psychological mark. On Sunday, the BTC price surged by 1.3%, buoyed by robust demand liquidity at the 100-day EMA, which acted as dynamic support. Despite this uptick, the short-term outlook remains bearish, characterized by a falling wedge pattern on the daily chart. The persistent pressure from the overhead trendline continues to drive the asset’s downward trajectory.
Also Read: Crypto Price Prediction 12/5: Will $BTC Hold $60K Support or Slide into Prolong Correction?
Will Bitcoin Price Hold $60000 Support?
For nearly two months, the Bitcoin price has been resonating within two converging trendlines of a falling wedge pattern. By the press time, the BTC price is trading at $61600 and facing dynamic resistance from the pattern’s upper trendline.
However, with the $60000 support still intact, the price trajectory turned sideways triggering an uncertain market sentiment. If the sideways trajectory of BTC price witnessed another force of supply liquidity, the seller may drive the asset to $565000 to $53100.
In a recent analysis highlighted by Dominando Cripto, a significant shift has been observed among Bitcoin holders. According to their data, investors who have held Bitcoin for up to one month are increasingly opting to sell off their holdings. Currently, these short-term holders possess approximately 1.25 million BTC, a substantial decrease from a recent peak of 2.56 million BTC. This sell-off amounts to a distribution of 1.31 million BTC among this investor group, who now represent 6.4% of all Bitcoin investors, with a total of 3.42 million addresses.
The investors who hold their BTC for up to 1 month are selling their coins. Currently, they hold 1.25 million BTC, while the recent peak was 2.56 million, indicating a distribution of 1.31 million BTC. They represent 6.4% of all investors, and the current number of addresses is… pic.twitter.com/lbpITFaq7P
— Dominando Cripto (@DominandoCripto) May 11, 2024
Dominando Cripto notes that this considerable distribution of coins is primarily due to the relatively low number of addresses holding significant amounts of Bitcoin, suggesting the emergence of new whales in the market who prefer short-term trading strategies. The significant sell-off by new whales can lead to increased market volatility.
Anyhow, for buyers to regain control over this asset, they must breach the overhead trendline. A potential breakout will accelerate buying pressure and bolster BTC’s price to chase a $73700 high.
Technical Indicator
- Exponential Moving Average: The 100-day EMA wavering around the $60000 level increasing the support strength of this level.
- Relative Strength Index: The daily RSI slope at 45% indicates a neutral to bearish sentiment among market participants.
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