This article is also available in Spanish.
bitcoin experienced a very volatile trading session yesterday, with prices fluctuating between $92,300 and $96,420 throughout the day. The cryptocurrency is now hovering around the $93,000 mark and struggling to establish a clear direction in the near term. As market participants await decisive action, uncertainty arises over whether bitcoin will maintain its bullish structure or face a deeper correction.
Related reading
CryptoQuant analyst Axel Adler recently shared valuable information, highlighting a significant trend among short-term (STH) holders. According to Adler, these investors continue to sell their coins at high profit margins, taking advantage of bitcoin's recent bullish momentum. While profit-taking is a natural part of market cycles, the lack of consistent demand to absorb this selling pressure could challenge bitcoin's price stability.
If demand fails to match the pace of active profit-taking, a local correction could occur, which could lead to a drop in the price of bitcoin. This delicate balance between profit taking and market demand makes the next few days critical in determining bitcoin's next move. Will buyers step in to support the price or will the selling pressure lead to a deeper pullback? Investors and analysts are closely watching how bitcoin navigates this pivotal moment.
bitcoin demand levels respond
bitcoin has faced days of intense volatility as it struggles to break through the psychological barrier of $100,000 while holding firm above the $92,000 support. The market remains in a state of flux, with investors and analysts closely monitoring bitcoin's next move. Despite the uncertainty, bitcoin's resistance at these key levels highlights the ongoing tug-of-war between bullish and bearish forces.
The best analyst Axel Adler <a target="_blank" href="https://x.com/AxelAdlerJr/status/1871419471908176103″ target=”_blank” rel=”nofollow”>recently shared an insightful analysis about xshedding light on the behavior of short-term holders (STH). According to Adler, STHs are actively selling their coins at high profit margins, taking advantage of recent price increases. While profit-taking is a normal part of market cycles, the lack of consistent demand to counteract this selling pressure could lead to a local correction and possible price decline.
However, in the event of a price drop, STHs are unlikely to continue selling their holdings, as selling at a loss in a bull market is often considered an unwise move. This dynamic could provide bitcoin with the breathing space needed to stabilize at its key support levels, currently around the $90,000 mark.
Related reading
If bitcoin successfully holds above $90,000, a period of consolidation around this level could create the foundation for the next rally, potentially propelling btc to new all-time highs. The next few days will be critical in determining whether bitcoin continues its rise or faces a temporary setback.
btc stays above $90,000
bitcoin is trading at $93,800 after enduring days of selling pressure and market uncertainty. Despite holding above the key support at $92,000, the loss of both the 200 4-hour moving average (MA) and the exponential moving average (EMA) is a short-term bearish signal. These indicators, often seen as indicators of market momentum, suggest that bitcoin may need additional demand to regain bullish traction.
For the bulls to regain control and spark a new rally, bitcoin must reclaim these critical levels. The 200 4-hour MA at $96,500 and the 200 4-hour EMA at $98,500 are essential hurdles. Successfully surpassing these thresholds and securing a decisive close beyond them would confirm renewed bullish momentum.
Related reading
If bitcoin achieves this feat, the stage could be set for a massive rally towards price discovery, breaking psychological barriers like $100,000 and paving the way for new all-time highs. On the other hand, failure to recover these indicators could indicate extended consolidation or a possible retest of lower support levels.
Featured image of Dall-E, TradingView chart
