Key Facts:
- After this fresh decline, bitcoin could revisit the $19,000 area.
- Now, the cryptocurrency has once again lost significant historical support.
While most people expected a new price increase, bitcoin gave a new surprise to traders in the market. The cryptocurrency was attempting to revisit the $21,000 area from an attempt to consolidate above $24,000. This prompts everyone to ask themselves again: Now what?
Analyst Daniel Ferraro analyzed the bitcoin price prospects after that drop. The results are given in trader Scott Melker’s latest newsletter published this Friday.
to Ferraro, There are three key values to look for right now: $23,000 as resistance after forming a buy zone for around 828,000 bitcoin overall; $21,000 as possible support; and $19,000 to move again as a potential zone if it fails to sustain strongly at current price levels.
$23,000 is especially important, like The 200-Week Moving Average is at that mark, This average has historically been important as support for the price of the cryptocurrency and its recent recovery points to a fresh uptrend, which has failed for the time being.
Another key is $25,000, which has proved to be a strong resistance for the cryptocurrency right now., Since last June 13, when Bitcoin fell from $26,500 to $22,400, the market has repeatedly attempted to break above $25,000. But without success.
The analyst noted that bitcoin’s price action remains “uncertain,” so it’s no surprise that traders lost so much money as a result of Friday’s price drop. As we reported at Cryptonoticious, this was the highest liquidation volume in the 24-hour range for leveraged traders since last June.
Bitcoin accumulation indicates its upside potential
Looking at the accumulation behavior of investors in BTC, Ferraro pointed to a possible bullish scenario. As he noted in his analysis, the percentage of bitcoins that haven’t moved between addresses for more than a year is near its all-time high since May 2021. just, 65.5% of bitcoins on the network are held for more than a year, Meaning, people are saving BTC at historical levels amid this bear market.
This could potentially lead to a top formation and also indicates how buyers refused to sell at lows after the great mining migration and early 2022.,
Daniel Ferraro, Market Analyst,
In recent days, bitcoin has shown weakness in the market. First, he failed to hold on to $24,000. Then, with a drop of 21,000, the outlook seems to be turning bad and there are those who expect a return to the high volatility in the cryptocurrency market.