Bitcoin Could Drop To $52,000 If Price Breaks Below This Mark – CryptoQuant
Amidst the ongoing fluctuations in the cryptocurrency market, the price of Bitcoin has surged by 1.7% in the past 24 hours, hovering above the $62,000 mark. However, recent warnings from CryptoQuant, a leading crypto analytics platform, suggest that Bitcoin could face a significant downturn to $52,000 if specific key levels are violated. This cautionary note comes amidst growing uncertainty in the Bitcoin derivatives market, with derivative traders showing unprecedented caution compared to previous halving cycles. Related Reading: Bitcoin Halving Hysteria: Will History Repeat Itself Or Are....
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The powerful growth of Bitcoin’s price was followed by a sharp drop. That downward trend was natural. What explains the current drop? It was mentioned earlier that Bitcoin’s price has reached an important long-term resistance line. A new direction is usually chosen in such points, or, alternatively, an old trend continues with more power, but only after a rebound. What that means, is that there was a good chance for a drop, and it happened. The last confirmation was the disruption of the structure of the upward trend, a point where the drop finally took place. So far this short-term trend....
As Bitcoin once again breaks past the $51k mark, on-chain data suggests more than 20k BTC exited exchanges before this price move. Bitcoin Netflows Say Around 20k BTC Flowed Out Of All Exchanges Yesterday As pointed out by a CryptoQuant post, netflows amounted to 20k BTC exiting exchanges yesterday, the largest spike since September. The “all exchanges netflow” is an on-chain indicator that measures the net amount of Bitcoin going into or out of wallets of all exchanges. The metric’s value is calculated by simply taking the difference between the inflows and the outflows.....
Bitcoin has been rejected several times after a push north of the $40,000 mark. At the time of writing, BTC trades at $36,621 with a 3.2% profit in the daily and a 31.9% in the weekly chart. The sentiment is growing bullish, as Bitcoin continues to tackle the important resistance at key levels. In addition, data from CryptoQuant points towards bullish indicators. Despite an increase in BTC inflows to exchange platforms, most of the selling seems to be absorbed by strong buyers. As a consequence, the Bitcoin spot reserves on exchanges are on a downtrend, as the chart below shows.....
Historical trend of the 200-day and 600-day MAs may suggest Bitcoin could observe another big drop in the near future. Current Bitcoin Pattern Has Historically Lead To A Big Drop In The Price As pointed out by an analyst in a CryptoQuant post, the current Bitcoin price looks to be squeezed between the 200-day and 600-day MA curves. A “moving average” (or MA in short) is an analytical tool that averages the price of Bitcoin over any desired range. As its name suggests, this average constantly updates itself as each day passes by and new prices are observed. The main benefit of....
On-chain data shows the percentage of the Bitcoin supply in loss has surged to almost 50% now as the crypto’s price tumbles below $20k. 49.94% Of The Total Bitcoin Supply Is Now Holding Some Loss As pointed out by an analyst in a CryptoQuant post, the drop below $20k has now put almost 50% of the supply underwater. The “percent supply in loss” is an indicator that measures what part of the total Bitcoin supply is currently in the red. The metric works by checking the transfer history of each coin on the chain to see what price it was last moved at. If the previous selling....