Bitcoin has taken another turn to the downside, at the time of writing, after moving sideways during the weekend. As NewsBTC has been covering over the past days, BTC lost critical support at around $40,000, and seems likely to continue its downtrend. Related Reading | Data: Bitcoin Miners Are Quietly Accumulating While The Market Bleeds Bitcoin is trading at $38,118 with a 2.6% loss in the past 24-hours. Per a recent report from Glassnode Insights, Bitcoin has reached a delicate equilibrium. As the benchmark crypto moves back into yearly lows, buyers are trying to absorb bears and establish new support. However, as the report claims, selling pressure has been “persistent” as speculator dump their BTC, probably due to the current macro-economic environment. This status quo has been maintained for over two months, as short-term investors jump out of the market. This new normal could break at any point if bulls continue to lose momentum, or sellers reached a level of exhaustion. Glassnode Insights added: With prices trading sideways in recent weeks, a relative equilibrium has been established. However, given the limited incoming fresh demand, this delicate balance can be disrupted by any significant degree of seller exhaustion, or conversely a re-invigoration of sellers. In the chart below, it is easier to visualize the above with an equilibrium created in the amount of Bitcoin held in crypto exchange platform as BTC’s price moves sideways. This metric has trend to the downside since March 2020, after the event called “Black Thursday”. Furthermore, the report claims speculator record a 15% aggregate unrealized loss. The majority of these investors bought at around $46,400, and they are currently existing their positions at a loss in opposition to long term holders which record an average purchase price of $39,200. Glassnode added: We can see that non-trivial daily losses have been sustained for over two months, equivalent to of around 0.5% of the Market Cap per day. Whilst significant, losses of this magnitude are nowhere near the extreme capitulation levels seen in the 2018 bear market, March 2020, or in May 2021. The Most Critical Level For Bitcoin In case of future downside, Bitcoin could experience a bounce at 3 critical levels. In the short term, $36,000 should hold to prevent a major drawdown as there are around $20 million in bids orders sitting at those levels. This support has been swelling over the past days, as data from Material Indicators points out. At around $35,000, there are additional $15 million in bids orders which provides an extra layer of protection against selling pressure. Remains to be seen if these levels will hold. Related Reading | Bitcoin Drops Below $39,000 As Crypto Markets Tank Over The Weekend In higher timeframes, $29,000 stands as a major psychological price point. During 2021’s downtrend, BTC found support at those levels, and losing them could trigger further losses. Glassnode highlights another important level: Realized Price is currently at $24.1k, and is the average price of all coins valued when they were last moved on-chain. Historically, this has been a very sound cycle support level, and suggests that the aggregate market is still holding an unrealized profit of 63%.
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Bitcoin price is moving higher above $19,250 against the US Dollar. BTC could eye a crucial upside break above the $19,500 and $19,650 resistance levels. Bitcoin started a fresh increase above the $19,200 and $19,250 levels. The price is trading above $19,200 and the 100 hourly simple moving average. There was a break above a key bearish trend line with resistance near $19,200 on the hourly chart of the BTC/USD pair (data feed from Kraken). The pair could start a strong increase if there is a clear move above the $19,650 resistance. Bitcoin Price Gains Momentum Bitcoin price remained well bid above the $18,800 level. BTC formed a base above the $19,000 level and started a fresh increase. There was a clear move above the $19,200 and $19,250 resistance levels. There was also a break above a key bearish trend line with resistance near $19,200 on the hourly chart of the BTC/USD pair. The pair gained pace above the $19,400 level and the 100 hourly simple moving average. It even broke the $19,500 resistance. However, bitcoin price failed to gain momentum above the $19,600 zone. A high was formed near $19,679 and there was a minor downside correction. The price is now trading below the 23.6% Fib retracement level of the upward move from the $18,865 swing low to $19,679 high. On the upside, an immediate resistance is near the $19,600 level. The first major resistance sits near the $19,650 level and the recent high. Source: BTCUSD on TradingView.com The next major resistance might be $20,000. A clear move above the $20,000 resistance might send the price towards the $20,500 resistance. Any more gains might open the doors for a move towards the $21,200 resistance zone. Dips Supported in BTC? If bitcoin fails to rise above the $19,600 resistance zone, it could continue to move down. An immediate support on the downside is near the $19,300 zone. The next major support is near the $19,250 zone. It is close to the 50% Fib retracement level of the upward move from the $18,865 swing low to $19,679 high. A downside break and close below $19,250 might increase selling pressure and the price might revisit $18,800. Technical indicators: Hourly MACD – The MACD is now losing pace in the bullish zone. Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now above the 50 level. Major Support Levels – $19,300, followed by $19,250. Major Resistance Levels – $19,500, $19,600 and $20,000.