The price of BTC still maintains the bearish direction, but a significant rejection of low prices suggests the exhaustion of the selling force. Reserves on exchanges have declined a sign that holders keep their coins in cold wallets.
Although Bitcoin has accumulated some profits in the last week, they are still not enough to regain the short-term upward trend. That situation creates distrust among investors, who believe that the bullish run has ended.
When writing this article, BTC is trading at around USD 48,710 and has accumulated a 1.7% profit in the last 24 hours. Its trading volume is above USD 33.3 billion, and its market capitalization is approximately USD 921 billion, according to CoinGecko.
The daily BTC/USDT chart indicates that the price is still in a bearish direction. The value of Bitcoin has hit increasingly low highs and lows. However, a strong rejection of low prices earlier in the month, together with a recent higher low, suggests the exhaustion of the selling force.
Despite that, the price of Bitcoin has not broken the resistances, so it could drop further or have a sideways movement in the short term. The closest resistance that it should break is at USD 50,500.
On-chain Metrics Indicate the Bullish Run of BTC Continues
Although the price has dropped, the reserves of coins on exchanges have also fallen. That is a sign that holders are still storing their BTC in cold wallets, awaiting an increase in the long term.
When the bullish run ended, Bitcoin stocks on exchanges hit a 4-year low. While a growing number of coins were entering cryptocurrency exchanges during the 2018 bear market, the opposite is happening now.
Weekly metrics show a bullish bias for the long term, which is uncertain regarding the near future.
In terms of supply and demand, the indicators are generally bullish. The same is true of those that evaluate the behavior of Bitcoin whales.
For the most part, technical oscillators used to track the price in the short term are neutral.
The market sentiment used to forecast short-term price action is slightly bearish.
In a few words, most on-chain indicators are neutral except for the S2F, which remains very bullish for the next few months.
A Bullish Dominance Indicates that the Price Has Hit the Bottom
The weekly analysis reveals that buyers remain the dominant force in the Bitcoin market. For that reason, the price of the pioneering cryptocurrency is likely to cause a surprise at any moment.
The recent drop in the price of Bitcoin reached a crucial support zone, close to USD 43,000. The rejection of that level seems to signal the beginning of new momentum that could resume the bullish run.
Nothing seems to confirm yet whether the bulls have regained control over BTC trading. However, the extent of the decline makes it relevant to monitor the behavior that favors the higher trend.
The current cryptocurrency market crash has led Bitcoin and altcoins to suffer significant falls in recent weeks. However, the pioneering cryptocurrency has recovered from its worst lows, resuming and exceeding its previous highs.
By Alexander Salazar
