2 weeks ago
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Bitcoin (BTC) price has slipped below a 25-day inclined trendline serving as support level. While BTC has knocked on this barrier several times in the past three weeks, momentum and on-chain indicators support an incoming crash.
Bitcoin Price Wearkness Could Lead to Crash
Bitcoin price has been conoslidating with a positive slope between two inclining trend lines. The same can be seen in the below chart. Recently, BTC slid below this key barrier after a failed attempt at overcoming the $100,000 psychological level. This outlook signals a spike in bearish momentum and could extend the ongoing drop.
Further supporting this drop is the 365-day Market Value to Realized Value (MVRV) ratio indicator that hovers around 36.59%, suggesting that nearly 36% of all investors that bought BTC a year ago are in-the-money. These unrealized gains are dangerous and could trigger a correction if investors decide to book profits.
BTC 365-day MVRVThe Network Realized/Profit & Loss (NPL) indicator shows massive upticks after Bitcoin price attempted to break the $100K for the second time. This uptick indicates that many investors actively booked profits, which adds a headwind to the uptrend and is likely one of the many reasons why BTC is sliding lower.
BTC NPLBitcoin Technical Analysis: BTC’s 6% Crash Likely
In addition to the value of BTC sliding below the key trend line, the Relative Strength Index (RSI) has slipped below the 50 mean level. This drop indicates that the momentum is shifting from bullish to bearish. This sentiment is echoed by Awesome Oscillator (AO) by receding red histograms above the zero line. A drop below the mean level will most likely trigger a spike in selling pressure and further crash Bitcoin price lower.
The $94,875 is first support area, breaching which could knock Bitcoin price down to $92,514. This move would constitute a 6% crash from the current price of $98.065.
BTC/USDT 4-hour chartOn the other hand, if Bitcoin price bounces off the inclined support trend line, it would denote a resurgence of buying pressure. In such a case, BTC needs to overcome the $100K hurdle into a stable support level with a decisive weekly candlestick close above it. In such a case, BTC could attempt to climb higher and tag new ATH at $111,800.
Frequently Asked Questions (FAQs)
Bitcoin price is slipping due to bearish momentum and on-chain indicators, including the 365-day MVRV ratio and Network Realized/Profit & Loss (NPL) indicators.
According to technical analysis, Bitcoin price could crash by 6% to $92,514 if it breaches the first support area at $94,875.
For Bitcoin price to resume its uptrend, it needs to bounce off the inclined support trendline and overcome the $100K hurdle with a decisive weekly candlestick close above it.
Akash Girimath
Akash Girimath, an engineer by training, has developed a deep fascination with the complexities of cryptocurrency markets. As a senior reporter and analyst, he specializes in crypto analysis and contributes his expertise to notable platforms such as AMBCrypto and FXStreet. In addition to his analytical work, Akash actively trades cryptocurrencies and manages a small crypto fund for friends and family. His role involves providing insightful market analysis and keeping readers informed about the latest trends in the crypto world. Follow Him on Youtube , X and LInkedIn
Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
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