Bitcoin Leads a Market Pullback Above $26K- Here’s How BTC Price May Perform in Coming Week
The post Bitcoin Leads a Market Pullback Above $26K- Here’s How BTC Price May Perform in Coming Week appeared first on Coinpedia Fintech News
In a world where economic uncertainties are rife, Bitcoin has once again proved its resilience, sparking discussions about its goals of a bullish rally. This week, the BTC price surged past the $28K milestone, buoyed by a positive Consumer Price Index (CPI) report that hinted at a recovering economy. The rally, however, was short-lived, and within a few hours, Bitcoin had dipped below the $26K mark. Yet, as the dust settles, Bitcoin is once again rallying, gaining traction amid economic chaos, and leaving traders in eager anticipation of a potential bullish comeback next week.
Bitcoin Faces Pressure from Sellers
The current downward rally in the BTC price chart has turned out to be profitable enough for short-term sellers as Bitcoin shows extreme volatility. Glassnode’s data reveals that the majority of short-term Bitcoin holders started making profits once the Bitcoin price eclipsed $25,200.
This suggests that numerous short-term holders were already in a profitable position, which could potentially urge them to liquidate their Bitcoin assets, possibly resulting in a price decline. The Spent Output Profit Ratio (SOPR), indicating that many Bitcoin addresses were selling at a loss, dipped below 1.
A SOPR value less than 1 signifies that more coins are being sold at a loss than a profit. This could hint at a potential market bottom, as it implies that most sellers who invested near peak prices have now divested. Nevertheless, the selling pressure experienced by short-term holders was not mirrored by those who had held their Bitcoin for longer periods. As per data from Santiment, the Market Value to Realized Value (MVRV) ratio has seen a considerable decrease in recent weeks.
This suggested that Bitcoin was no longer overvalued and that long-term holders lacked a strong motive to sell their Bitcoin assets.
What to Expect from the BTC Price Next Week?
On the 4-hour price chart, Bitcoin is showing support from bulls as the price has successfully recovered from $26K. BTC’s price is currently attempting to break above the EMA20 resistance level, which may drive the price further to a new resistance level.
As of writing, Bitcoin price hovers around $26,863, gaining over 0.8% in the last 24 hours. The asset continues to hover within a range-bound zone at $26.5K-$27K. However, bulls may gain confidence if the BTC price surges above $26.9K, as the asset may witness a spike in long positions near this level.
It is expected that bears may try to slump the price to $26.5K again in the next 2-3 days; however, a rebound is on the horizon by the next week as bulls are on their way to send the price above EMA50 at $27.5K.
Filed under: Bitcoin - @ May 14, 2023 8:56 am