The post Bitcoin Faces Significant Selling Pressure appeared on BitcoinEthereumNews.com.

Bitcoin (BTC) is currently trading below $57,000, heightening concerns about potential declines in altcoins. The cryptocurrency has been unable to break through the $61,660 SMA50 resistance for the past week, causing it to fall back to its foundational level. As Asian markets prepare to open, an expected volatility surge could prompt cautious investors to offload their holdings. Why is Bitcoin Struggling? The primary issue at hand is a noticeable drop in demand. Glassnode’s data highlights this via the cumulative volume balance (CVD), which tracks the equilibrium between buying and selling. The data shows a distinct net selling pressure, confirmed by the negative adjusted spot CVD (30-day SMA). Analysts note: “The recent failure to surpass the $70,000 region can partly be attributed to weak spot demand, as indicated by the negative adj-CVD. There’s a clear trend towards selling pressure in spot markets, which persists.” Access COINTURK FINANCE to get the latest financial and business news. What is the Impact of the Death Cross? The 50-day moving average, a critical support level, has been breached again amidst the downturn driven by concerns from Japan and fears of a global recession. Noted crypto analyst Mags has expressed concerns about the death cross, which is formed when the 50 MA falls below the 200 MA, signaling short-term market weakness. The collapse of FTX has led to the second death cross since September 2023. Mags suggests that reclaiming the moving averages could spark a reversal, similar to prior patterns, leading to a period of volatile price action and potential bullish confirmation. The chart from Material Indicators reveals whale block liquidity demand with the dip below the 50-day SMA. Although whales continue to buy, the demand for liquidity reduces upward cash inflows, leading to market weakness. Experts suggest that for BTC bulls to regain momentum past…

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Filed under: News - @ August 16, 2024 3:16 am