This week, Bitcoin price showed significant fluctuations, fluctuating around $60,000, an important psychological mark. On Sunday, BTC price rose 1.3%, supported by solid demand liquidity at the 100-day EMA, which acted as dynamic support. Despite this rally, the short-term outlook remains bearish, featuring a descending wedge pattern on the daily chart. Sustained pressure from the overhead trend line continues to drive the asset's downward trajectory.
Also read: Cryptocurrency Price Prediction 12/5: Will $BTC hold $60,000 support or will the correction be prolonged?
Will Bitcoin price hold the $60,000 support?
For almost two months now, Bitcoin price has been resonating within two converging trendlines in a descending wedge pattern. As of this writing, BTC price is trading at $61,600 and is facing dynamic resistance from the upper trendline of the pattern.
However, with $60,000 support still remaining, the price trajectory turned sideways, causing uncertain market sentiment. If the sideways trajectory of BTC price witnesses another force in supply liquidity, sellers could push the asset from $565,000 to $53,100.
A recent analysis highlighted by Dominando Cripto observes a significant shift among Bitcoin holders. According to their data, investors who have held Bitcoin for up to a month are increasingly choosing to sell their holdings. Currently, these short-term holders hold approximately 1.25 million BTC, which is significantly down from the recent peak of 2.56 million BTC. This sale will result in the distribution of 1.31 million BTC to this investor group, which currently accounts for 6.4% of all Bitcoin investors and holds a total of 3.42 million addresses.
Dominando Cripto points out that this large distribution of coins is mainly due to the relatively small number of addresses holding large amounts of Bitcoin, and that new whales that prefer short-term trading strategies have appeared in the market. It suggests that there is. A significant sale of new whales could lead to increased market volatility.
In any case, a breakout of the overhead trend line is required for buyers to regain control of this asset. A potential breakout will likely accelerate the buying pressure and force the BTC price to chase the highs of $73,700.
technical indicators
- Exponential moving average: The 100-day EMA is swinging around the $60,000 level, increasing the strength of support at this level.
- Relative strength index: A daily RSI slope of 45% indicates neutral to bearish sentiment among market participants.
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