Bitcoin in Crucial Price Zone: Why This Week Gets Exciting Again

Bitcoin (BTC) took a big plunge last week. The price lost traction at $30,000 and briefly dipped below $27,200 on Saturday. Since then, bitcoin has held up and the price has even recovered slightly. Bitcoin hit $27,900 last night, but is rapidly dropping this morning to $27,450 on Binance and $25,000 on Bitvavo.

This puts the bitcoin price down 1.1% today. The trading volume fell by 7% in the past 24 hours. The total market capitalization is $532 billion and the dominance is 45.9%. The Fear & Greed Index comes out at 53 (Neutral).

Investors who bought top sell at a loss

Last Friday, a whopping $240 million worth of BTC was sold, reports James V. Straten. Selling behavior among investors is becoming increasingly aggressive, the analyst says. He adds that it’s mainly short-term holders, who bought the top just above $30,000, who sold the most recently, and at a loss.

Confidence that we are in a bull market seems to be rapidly waning again. Analyst company Ecoinometrics therefore calls the current market a typical bear market.

Bitcoin price is in crucial price zone

Bitcoin has been in a somewhat crucial price zone since Friday. The price is just above the 50-day simple and exponential moving averages, which come in at $27,120 and $27,300. It also sits just below the 100-week exponential moving average, which comes in at $27,630. There is also a so-called CME gap in between.

For now, bitcoin is holding above 27,000. According to the co-founders of analytics company Glassnode, this could even be a sign of a new bottom.

However, analyst Caleb Franzen notices that bitcoin is not yet able to break through $27,820 again. This is necessary to keep the momentum bullish, according to the analyst. There seems to be a lot of fear in the market that if $27,000 doesn’t hold, we could quickly drop another step lower towards $25,000.

New macro data this week

Last week was a bit quieter in terms of macroeconomic data, but prices still took a sharp dive. This week promises to be even more exciting.

Among other things, we have it earnings season, which starts to run at full speed. As many as 42% of S&P 500 companies will publish their quarterly results in the coming days, including the very largest companies. The premarket futures are already turning red this morning.

New US housing market figures will also follow tomorrow, unemployment figures on Thursday and new inflation figures this Friday with the core personal consumption expenditures (PCE). The Federal Open Market Committee (FOMC) meeting follows next week.

Bitcoin NFTs continue to grow rapidly

Despite the falling price, NFTs continue to do remarkably well on the Bitcoin network. The number of Ordinals, or bitcoin inscriptions, on the network is increasing at an increasing rate, according to data from Dune Analytics.

Are you looking for more insight into crypto prices or help with trading?

In the premium environment of Crypto Insiders you will find a vibrant and friendly community of over 1,000 members helping each other to trade. Also, our analysts share more than 20 technical analyzes here every week exclusively for premium members. View our Premium page for more information and try the first 30 days for free.

Disclaimer: Investing involves risks. Our analysts are not financial advisors. Always consult an advisor when making financial decisions. The information and tips provided on this website are based on our analysts’ own insights and experiences.

Recent Articles

Related News

Leave A Reply

Please enter your comment!
Please enter your name here