Is Bitcoin’s Recent Price Decline Nearing Its Conclusion?
In the past week, Bitcoin (BTC) has experienced a 4.4% decline, sparking concerns about a potential sharp price crash amidst global economic uncertainties. However, new on-chain data suggests that the current downward trend may be approaching its end.
Signs of Bitcoin’s Downward Trend Losing Momentum
According to recent insights shared by renowned crypto analyst CryptoGoos, the current Bitcoin decline seems to be losing steam. The analysis, highlighted in a recent post on X, reveals that short-term BTC sellers are facing exhaustion. The shared chart illustrates the Bitcoin buy/sell pressure delta, an important metric that reflects the difference between buying and selling activities on exchanges through order book data or on-chain flows. A positive delta denotes stronger buying interest, while a negative delta indicates increased selling pressure.
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A noticeable decrease in the intensity and frequency of red spikes, which signal sell pressure, on the right side of the chart suggests a weakening of selling pressure. Concurrently, the growing presence of green spikes indicates a rising dominance of buy orders over sell orders.
In parallel, another crypto analyst, Titan of Crypto, pointed out a potential bullish pennant forming on the Bitcoin daily chart. He speculated that the price’s next significant movement could be influenced by the impending US Federal Reserve’s FOMC (Federal Open Market Committee) meeting.
Similarly, crypto trader Merlijn The Trader shared an optimistic outlook, noting that Bitcoin’s Moving Average Convergence Divergence (MACD) indicator has turned green on the weekly chart, while maintaining its current structure.
The MACD is a momentum indicator used to identify changes in the strength and direction of a trend in prices. It compares two moving averages of a price and signals traders on buying or selling opportunities based on the crossing of these averages.
Critical Support Level for Bitcoin to Sustain
In a separate analysis on X, seasoned analyst Ali Martinez emphasized a critical support level that Bitcoin must defend to avoid a significant correction. He referred to the Market Value to Realized Value (MVRV) Pricing Bands, cautioning that if BTC drops below $102,044, it could potentially fall to $82,570.
Additionally, recent exchange data indicates a decline in Bitcoin trading activity across all major platforms, with BTC trading volumes hitting multi-year lows on leading exchanges. Despite this trend, the Puell Multiple suggests that there might still be some potential for BTC’s price growth. At the time of writing, BTC is trading at $104,713, reflecting a 0.4% increase over the past 24 hours.
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