Journalist
Posted:
- The Pi Cycle Top indicator indicated a possible market bottom around $78,000.
- Selling pressure on BTC increased, which could push the price down further.
Bitcoin [BTC] has been in a difficult situation in recent weeks as the currency has failed to post promising gains.
In fact, the latest analysis suggested that things could get worse, as there is a chance the coin could fall back to $85,000 in the near term.
Bitcoin is in trouble!
The price of Bitcoin has been somewhat consolidating in recent days.
Over the past 24 hours, the price of the king coin registered a modest increase of 0.5%, leaving it trading at $94,937.45 with a market capitalization of over $1.88 trillion.
As BTC price volatility dropped, Alphractal, a popular data analytics platform, reported a tweetmentioning a possible obstacle for BTC’s future.
The tweet used BTC’s Short-Term Holder Realized Price metric, which represents the average purchase price of Bitcoin for investors considered short-term holders, typically defined by the movement of coins held for less than 155 days.
The tweet mentioned
“Losing the 85k region could be disastrous for the price, and a bear market could ensue. Therefore, between 85,000 and 86,000 years, the bulls will do everything they can to keep the price up!”
Will BTC drop to $85k again?
According to the Pi Cycle Top indicator, BTC had a possible market bottom around $78,000. Therefore, the possibility of BTC falling to $85,000 cannot be ruled out.
Source: Glassnode
In addition, the selling pressure on the royal coin also increased.
AMBCrypto reported rather that BTC spot exchange reserves, after consistently declining over the past month in light of investors withdrawing their assets from exchanges, recently surged significantly with an inflow of 20,000 BTC.
A rise in the benchmark means investors are selling their assets, which often has a negative impact on prices. Things also looked worrying on the derivatives market.
According to CryptoQuant’s factsBitcoin’s buy/sell ratio turned red. This clearly meant that selling sentiment was dominant in the futures market.
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That investors were selling their assets was further evidenced by the technical indicator Money Flow Index (MFI), which recorded a decline.
If selling pressure continues to rise, Bitcoin may as well fall back towards $85,000 in the short term.
Source: TradingView