- Bitcoin trend strength prophesy fulfilled.
- Bitcoin volatility dwindling as percent in profit reduces.
As an analyst with over a decade of experience in the crypto market, I’ve seen my fair share of Bitcoin’s ups and downs. The current trend strength prophecy being fulfilled reminds me of the saying, “History doesn’t repeat itself, but it often rhymes.” Bitcoin’s consistent pattern of three dips into the support zone during the same cycle has historically led to a price move higher.
Bitcoin’s [BTC] characteristic cycle has been evident yet again as the Bitcoin Trend Strength Prediction comes true.
Back in 2016, the value of Bitcoin dropped to its support level in September. Remarkably, a similar trend appears to have resurfaced in 2024.
Over successive periods, the market’s behavior has been predictably steady. Interestingly, during the same phase, there have been three significant drops that typically find their bottom in the support area, which often results in an uptick in prices.
In line with past trends, this ongoing cycle seems to suggest a potential upward momentum for Bitcoin’s price, possibly leading to another spike on the graph from my perspective as an analyst.
Currently, as I’m typing this, Bitcoin was being traded near a significant support point approximately within the $56,000 price band. Above this, there is a solid resistance at $65,000. This newly established support might lead to a rebound or cause a downward trend to continue.
Should Bitcoin not sustain its position above $56k, it might keep falling towards the potential support of $49k. If it manages to hold at this price point, though, that could suggest an upward trend for Bitcoin within the upcoming period.
Liquidity levels
The decrease in Bitcoin’s price recently is due to a surge in sell orders, which in turn enables accumulation of buy orders at lower prices. Over the last six months, there have been numerous bids stacked below the $59k mark, indicating a sustained trend.
It’s intriguing that the price hasn’t changed significantly even with active ‘whales’, who seem to have intentionally driven down the price to buy more Bitcoin for their stockpile.
It’s noteworthy that Binance‘s trading data suggests they were buying at these prices prior to any subsequent price increase.
Bitcoin’s volatility is dwindling
As an analyst, I’ve observed that the volatility of Bitcoin plays a substantial role in its movement. At its current price point of approximately $56k, Bitcoin’s volatility has decreased significantly compared to 2021 levels. To put it into perspective, the volatility of Bitcoin in 2021 was around 4 to 6 times greater than what we are experiencing now.
Previously regarded as a potential peak for speculation, the $60,000 range is now seen as an area where long-term investors amass Bitcoin, building their positions over time.
Essentially, this implies that the price of Bitcoin has dropped to $60,000 and may stay there or increase for a while as it establishes new bases of support.
Fear and greed index
At the moment, the general market attitude appears to echo the apprehension experienced during 2022’s low points. This widespread anxiety has caused many investors to hesitate, yet this caution might indicate a chance for a turnaround.
As institutional interest grows and more projects get built using Bitcoin’s infrastructure, the present market dip could be an excellent chance for investment, potentially offering substantial returns later.
In fact, history has shown that such fear can often precede major upward moves in price.
Percentage supply in profit
Despite the uncertainty, however, the percentage of Bitcoin supply in profit has dropped by 25%, meaning fewer investors are making gains. Roughly 4,938,183 BTC are currently held at a profit, valued at around $280 billion.
It seems that Bitcoin’s current profitable positions indicate it may be advantageous for long-term investors to keep holding, given that the market might be preparing for a recovery and potential increase in BTC prices soon.
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2024-09-06 15:04