Bitcoin dropped to a low of $114,706 a few hours ago. It traded at its lowest value over the last ten days, sparking fears of further price declines.
The 4-hour chart shows that the apex coin started its downward movement late on Sunday UTC. It saw a consistent decline in six candles but printed a green one at the time of writing.
A closer look at the chart indicates that during the previous candle, the support was maintained during the current session. Nonetheless, BTC’s price indicates no strong rebound yet. On the broader scale, the apex coin is down by almost 2% since the day started.
Why Is Bitcoin Down?
Bitcoin is seeing an extension of the previous week’s price trend. The return of inflation in the US caused a massive price decline after the asset surged to a new all-time high.
Trading actions after Thursday’s drop showed several failed attempts at recovery. The coin dropped lower on Friday and failed to register any significant price change over the last two days. As a result, it closed with slight losses on the weekly scale.
Reports from CryptoQuant indicate that selling resumed on Monday. It is worth noting that traders sold 31,968 BTC on Saturday. The group that carried out these transactions raises concerns among investors, as they are those who have held for a period between 3 and 5 years.
The report noted that this is the first time in a year that this age group has reached such a high level. A closer look at what previous movements shed light on why the latest event raises alarm. The band under consideration only carried out such when something big was about to happen.
On Jan 24, 2024, they moved over 33k BTC, which marked the bottom. Trading actions suggest that new investors entered the market after these selloffs. However, the event on Mar 23 showed the opposite result. The group sold over 95k BTC, which marked the local top.
Neither scenarios tell how the price will react following the selloff. They marked a key turning point in price action. Nonetheless, it may sometimes result in further drawdowns.
Increasing Exchange Reserves
Data from CryptoQuant shows that exchange reserves are increasing. 19,39k flowed from these trading platforms in the last 24 hours. This is against the 20,730 BTC that moved in during the same period. The increase in influx over outflow indicates that the selloff is ongoing and the buyers are yet to soak up the supply.
Reports from Glassnode show that the short-term holders’ SOPR plummeted a few days ago. However, it recovered following buybacks. It is worth noting that the cost basis for this group of investors is $122k, and SOPR recovery shows that they are ready to defend it.
Bitcoin’s price suggests that it is still at risk of further decline. While it shows slight signs of rebound, several events at the time of writing may trigger a drop to $112k. One such is the meeting between the US President and his Ukrainian counterpart.
A positive end will see the apex coin soar. Conversely, a drop to the highlighted price mark may happen in the next 24 hours if the event doesn’t go as many anticipate.
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