- Selling pressure on Bitcoin has increased recently.
- The market indicators looked bearish and suggested a further price decline.
Expectations of Bitcoin [BTC] has increased in the recent past as the king of cryptos climbed above the $46,000 mark. Just before the move north, large holders rightly identified the buying opportunity and stocked up on BTC.
Amid all this, one of BTC’s key metrics reached a critical level, which could impact its price.
Investors bought the dip!
In recent days, the BTC bulls have stepped up their game as the price of the king of crypto surpassed $46,000.
According to CoinMakretCapBTC has risen more than 2% in the past seven days. At the time of writing, BTC was trading just under $46,000 at $45,980 with a market cap of over $901 billion.
Thanks to the price increase, most BTC investors enjoyed profits. AMBCrypto’s look at IntoTheBlock’s data revealed that 90% of BTC holders made a profit.
Source: IntoTheBlock
Before the price of BTC gained bullish momentum, investors took advantage of the opportunity to accumulate more BTC.
According to IntoTheBlock’s latest tweet, Bitcoin holders with >1% of supply have accumulated over 14,000 BTC over the past week. They collected these coins when prices fell below the $43,000 mark.
Big holders bought the dip! Bitcoin holders holding >1% of the supply amassed more than 14,000 $BTC this past week, when prices fell below $43,000. pic.twitter.com/VgBXvtaI1o
— IntoTheBlock (@intotheblock) January 9, 2024
To check whether buying pressure was still high, AMBCrypto looked at data from Santiment and CryptoQuant. Our analysis showed that BTC’s foreign exchange reserve increased. This clearly meant that investors were selling BTC.
In fact, the distance between the supply of BTC on the exchanges and the supply outside the exchanges on the map decreased. This further suggested that selling pressure on Bitcoin was increasing.
Source: Santiment
Bitcoin will start another bull run soon?
While this was happening, one of BTC’s most important metrics reached a critical point. Blockchain Backer recently posted a tweet highlighting BTC’s Fibonacci retracement level.
For initiators, the metric displays horizontal lines that indicate where support and resistance are likely to occur.
Bitcoin Market Cap Hits the Fibonacci Retracement Level of 0.618 as BTC ETF Decision Approaches.
We said for two years that we would come here. Thousands screamed that it would never happen.
Now FOMO in. pic.twitter.com/H5ZHknZHHb
— Blockchain Supporter (@BCBacker) January 8, 2024
According to the tweet, Bitcoin market cap reached the Fibonacci retracement level of 0.618. When the benchmark reached that level in 2021, the price of BTC reached an all-time high in the following weeks. This time, however, things looked a little different BTC‘s daily chart turned red.
The reason behind this sudden downtrend can be attributed to the FUD surrounding ETFs reported earlier.
So, to see if the possibility of BTC starting a bull rally was likely, AMBCrypto took a look BTC‘s daily chart.
Read Bitcoins [BTC] Price prediction 2024-25
Our analysis revealed some bearish indicators. For example, the price of Bitcoin reached the upper limit of the Bollinger Bands.
Moreover, the Money Flow Index (MFI) also registered a slight decline, raising the possibility of a sustained price decline in the coming days.
Source: TradingView