Bitcoin (BTC) briefly dropped to a new annual low around $15,500 early this week. Subsequently, the price recovered quite quickly and then returned to the same area as before, which was between $16,500 and $16,700.
Bitcoin failed to break out there yesterday and is down slightly early this morning, but appears to be finding support around $16,400. At the time of writing, the BTC price stands at $16,410 on Binance and $15,750 on Bitvavo.
This means that the bitcoin price is 1% down today. The trading volume fell by 25% in the past 24 hours. The total market capitalization is $316 billion and the dominance is 38.2%. The Fear & Greed Index comes out at 20 (Extreme Fear).
Bitcoin Fear and Greed Index is 20 – Extreme Fear
Current price: $16,600 pic.twitter.com/4lnhnT7ZPb— Bitcoin Fear and Greed Index (@BitcoinFear) November 24, 2022
Long weekend, low volume
Yesterday was Thanksgiving in the United States and US financial markets remained closed. The markets will also close earlier today.
That could mean we will have a long weekend of low volumes in the crypto market. Meanwhile, the trading volume on crypto exchanges has cooled down considerably since the FTX crash, reports analysis company Kaiko:
Trade volume cooled off significantly last week after one of the busiest weeks ever during the FTX collapse. Weekly volume on Huobi and Bitfinex dropped 82% and 75%, respectively. Gemini’s volume fell by 56% after the exchange halted its Earn program and Binance’s dropped 60%. pic.twitter.com/bGbYPyLKpB
— Kaiko (@KaikoData) November 22, 2022
Average bitcoin investor heavy in loss
Profitability in the bitcoin market is currently at its worst ever, analyst Checkmate writes. The average bitcoin investor is currently at an unrealized loss of -37%. Only 75 days have BTC investors been worse off in Bitcoin’s nearly 14-year history.
The current #Bitcoin market profitability is basically the worst it has ever been.
Adjusted MVRV, which measures market wide profit excluding lost coins, is at 0.63.
This means the average $BTC investor is holding an unrealized loss of -37%.
Only than 75 days have been worse off. pic.twitter.com/sMitgEbwg3
— _Checkɱate 🔑⚡🦬🌋☢️🛢️ (@_Checkmatey_) November 24, 2022
Exchange flow indicates more BTC selling pressure
Despite this, many analysts fear for worse. In recent days, the flow of bitcoin to exchanges has increased again, reports CryptoQuant analyst Shahsavar.
From data, it appears to be long-term holders sending their BTC to exchanges, possibly to sell. That could lead to more selling pressure, but could also invite whales that want to accumulate during the bottom.
Increasing sales pressure in the market
“High values of Fund Flow Ratio indicate investors are actively using the exchanges.”
by @ghoddusifarLink👇https://t.co/0A1KlaYHTk pic.twitter.com/DWqYRsdQkP
— CryptoQuant.com (@cryptoquant_com) November 25, 2022
Bitcoin is struggling with a large supply wall
For now, the area between $16,600 and $17,060 is providing a lot of resistance, Ali Martinez reports. There is a significant one here supply wall as nearly 950,000 addresses bought some 800,000 BTC here. A strong upward movement is needed to break through this barrier.
#Bitcoin has reached a significant supply wall between $16,600 and $17,060, where nearly 950,000 addresses had previously purchased roughly 800,000 $BTC.
Only a sustained move above this resistance barrier can help #BTC print higher highs. pic.twitter.com/iTTgHPoSaz
— Ali (@ali_charts) November 24, 2022
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