As bitcoin price consolidates below the $60,000 threshold, the market has been characterized by a mix of technical indicators and levels, leading to a divided outlook and increased uncertainty.
Mixed signals cloud bitcoin price trajectory
x.com/mark_cullen/status/1825445013683085369″ target=”_blank” rel=”nofollow”>According For bitcoin bullish Mark Cullen, the current bitcoin price action presents a complex technical picture. He suggests that the $57.5000 level is likely to be tested and the key question is whether it will hold.
Cullen believes that will be the case, at least initially, before potentially falling. He also highlights the importance of the $59,500 level, stating that if bitcoin can break above it, it would be a strong signal to buy heavily on the asset with a tight stop loss below.
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However, Cullen also warns of the possibility of a wipeout. liquidity below the $54,500 level, which could pave the way for a move to fresh lows in the $40,000 range if that level is broken.
Cryptocurrency analyst Axel Adler also x.com/AxelAdlerJr/status/1825419374955569174″ target=”_blank” rel=”nofollow”>needles In a similar vein, highlighting that as bitcoin price is currently trading below its 200-day simple moving average (SMA), this could lead to further downside for btc. According to Adler’s analysis, the next level of support is the 365-day SMA at $50,000.
What do btc's on-chain fundamentals say?
Compounding the technical uncertainty, data intelligence platform Glassnode has… x.com/Negentropic_/status/1825234700207579147″ target=”_blank” rel=”nofollow”>reported that Swissblock’s bitcoin Fundamental Index (BFI) moved from positive to neutral territory last week.
According to the platform's co-founders, Yan Alleman and Jan Happel, this change reflects the uncertainty surrounding the Black Monday event and the subsequent Consumer Price Index (CPI). bull trap I felt on the chain.
The BFI, comprised of two sub-metrics measuring liquidity and network growth, has recently shown a fork. While network liquidity has fallen to neutral territory, network growth has increased, painting a complex picture of bitcoin’s fundamental outlook.
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Alleman and Happel point out that the decline in network liquidity, while affecting the short term, is not necessarily a bearish signal In the long term, they explain that greater network liquidity is desirable, as it improves bitcoin's functionality as a medium of exchange.
However, the increased network growth is seen as a strong bullish signal, indicating that more actors are interacting with the bitcoin network on an entity-adjusted basis. This effectively creates a deeper pool of native cryptocurrency capital, which could support the asset’s long-term valuation. Glassnode co-founders stated:
Given the current “digital gold” store of value narrative and the increased ease of gaining exposure to btc via ETFs, CEXs, etc., the increasing network growth is a strong bullish signal.
At the time of writing, bitcoin is priced at $58,680, down more than 2% over the past 24 hours.
Featured image of DALL-E, chart from TradingView.com
