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Have Bitcoin Bottomed Out at $92k?

Several indicators point to a drop in buying pressure over the last 24 hours. Nonetheless, the bollinger band hints at further upside
Gideon Geoffrey
Last updated:
12 January 2025 @ 01:38 UTC
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Bitcoin saw notable increases during the previous intraday session. It peaked at $95,227 and closed with an over 2% increase.

Friday’s close marked the first green after three days of consistent downtrends. The asset closed at $94,702 and has maintained the level into the current intraday session. Trading at $94,643, the apex coin may close at the same mark.

The decline, which started on Tuesday, is yet to fully clear as BTC struggles to flip $95k decisively. Retracing from $102,278 during that session, it lost the $1ook mark but found support at $96k. Many blamed several events for the decline.

Nonetheless, a report of a drop in global liquidity was the most probable reason. The treasury yields increased by 5%. The reports, which made the headlines the next day, caused massive panic as the worries grew on the second day of the week.

The 20-year yield, which trailed behind the US government debt curve, surged as the global market feared President-elect Donald Trump’s policies would put more pressure on the $28 trillion market.

While the previous day’s trend offered slight relief, the apex coin is unable to continue the surge due to the weekends. The global cryptocurrency market sees notable declines during this period. Several indicators point to a drop in buying pressure over the last 24 hours.

Long-term Investors Remain Positive

Data from CryptoQuant shows a drop in long-term holders’ movement. The metric shows the amount of coins investors who held longer than six months moved. An increase in this metric suggests massive selling pressure. However, the movements notably declined in the last 24 hours.

The apex coin sees notable network activity. Active addresses increased by over 85% in the last 24 hours. Transactions surged by over 123%, while volume increased by 33%.

It is worth noting that the derivative market remains positive amidst the ongoing price struggles. The taker buy-sell ratio is above 1, revealing that the bulls are edging in this section. Funding rates remain fairly the same as open interest slightly increased.

However, exchange reserves are on the rise. Netflow is positive, surging by almost 300% in the last 24 hours. Stronger selling pressure from the US is one of the contributing factors suggested by the Coinbase Premium. Asian investors show a similar sentiment as the Korea premium remains negative.

Investors anticipate the next big move to form an opinion either to be bullish or bearish. Bitcoin is yet to make such a massive upside move as more traders sit on the fence about what side to take. Many believe the new US president’s inauguration will improve the market’s bullish sentiment.

Bitcoin Sees More Downside Pull

Indicators on the one-day chart reveal several bearish signals. The moving average convergence divergence continues its descent. It had a bearish interception on Wednesday, with the 12-day EMA slipping below the 26-day EMA. The small timeframe exponential moving average continues its downtrend with no signs of halting.

The relative strength index trends parallel at the time of writing. Its latest trend comes after a small increase in buying pressure. However, the decline in buying pressure and trading volume saw the upside movement halt.

The Bollinger bands suggest the continuation of the upside movement. Bitcoin bounced off the lower band on Thursday. The event met strong buyback that resulted in a rally the next day. BTC may resume the uptrend, breaking above $96k.

On the other, bearish fundamentals may send the apex coin lower. It risks a descent to $88k.

Gideon Geoffrey

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