Will Bitcoin (BTC) Price Struggle To Surpass $17300 Lead To Deeper Correction?
The Bitcoin price remains trapped within a narrow range, setting indecisiveness in the crypto market. However, the daily chart shows reversal signs at the range’s top resistance, which may plunge the prices back to the $16800 mark. Anyhow, is there a way for Bitcoin to end this consolidation?
A potential reversal from $17300 indicates prolonged consolidation in Bitcoin
The 50-day EMA stands as a dynamic resistance to rising prices
The intraday trading volume in Bitcoin is $12.7 Billion, indicating a 12% drop
Over the past two weeks, the Bitcoin price has been strictly moving within two horizontal $17300 and $16800, indicating an evident range-bound rally. After a massive inflow on November 8th, the coin price rebounded from the $16800 support and hit the $17300 resistance in one strike.
However, the buyers still struggle to escape this range, indicating the sellers continue to defend the higher levels. The higher price rejection candles at the $16800 barrier accentuate a high possibility of a bearish reversal.
Thus, this reversal set the Bitcoin price to tumble 2% to revisit $16800 support, suffering the ongoing consolidation will extend for a few more sessions.
However, the trades will need a breakout from the aforementioned range barriers to initiate a directional rally and possible targets.
Will Bitcoin price prolong its downfall?
A recent tweet from the on-chain data provider, glassnode, accentuates the realized loss by Bitcoin investors. The data shows the investor has realized over the last 365 days but also highlights a yearly Profit of $455B realized in the 2020-21 bull.
Over the last 365-days, a total of $213B in Realized Loss has been locked in by #Bitcoin investors.
This compares to yearly Profits of $455B realized in the 2020-21 bull.
This reflects a relative capital loss of ~47% of the bull market gains, similar in scale to the 2018 cycle. pic.twitter.com/y5jaSWEZ83
— glassnode (@glassnode) December 8, 2022
Surprisingly, this capital loss of 47% bull market gains is similar to the scale of the 2018 cycle.
Furthermore, these losses indicate weakness in holders’ confidence which lean the market sentiment toward a selling motive.
Anyhow, will the market repeat history and trigger a rally like 2019, is a bit early to tell.
Relative Strength Index: the RSI indicator(49.8%) reflects the speed and magnitude of the coin’s recent price, indicating a neutral outlook from market participants.
EMAs: the downloading EMAs(50 and 100) suggest an overall downtrend and give sellers an upper hand.
Bitcoin Price Intraday Levels
Spot rate: $17154
Resistance levels- $17300 and $15700
Support levels- $16800 and $15700
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Filed under: News - @ December 11, 2022 3:06 pm