This Bitcoin indicator hints at the bottom. Has BTC out of its predicament?

Bitcoin has Selective violence. The first cryptocurrency trading price by market value was 57,873 USD, with a daily drop of 3% and a weekly chart drop of 11.2%.

BTC is in a downward trend on the daily chart.Source: BTCUSD transaction view

Bitcoin, which was pushing close to $60,000, was rejected and trended downward in the past 2 hours. The benchmark cryptocurrency may have reacted to the possible reappointment of US Federal Reserve Chairman Jerome Powell (Jerome Powell) for a second term.

Related Reading | This Bitcoin indicator hints at the bottom. Has BTC out of its predicament?

Data from Material Indicators shows that the upward movement is driven by investors with orders (whales) estimated to be worth more than $1 million. As shown in the figure below, once the price of BTC reaches $59,000, these investors, retail investors and other investors who bid more than $1,000 are sold.

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FireChart BTC / USD Source: Material index

As shown in the chart, Bitcoin has almost no resistance or support at this level. On the downside, the important support level (BTC price below the blue line in the chart) is about $55,000, while on the upside, $60,000 is the biggest resistance level for the BTC price in the short term (above the blue line in the chart) semester.

According to Glassnode’s data, Bitcoin’s short-term and long-term realized value (SLRV) is back below 0.4. As shown in the chart below, whenever the price of BTC reaches these levels, the cryptocurrency will appreciate.

Related Reading | Bitcoin rebounds to $58,000, why the bear market may spill more blood

Pseudonym Analyst On-Chain College Comment The following is the indicator’s recommendations for Bitcoin in a higher time frame:

I think the most interesting thing is the relationship between this ratio and the increase earlier this year.Please note that the SLRV ratio increased with the price increase at the beginning of the year, and steadily decreased/integrated with the price increase a few months ago…bullish

Bitcoin is still on mission to the moon?

Despite the recent price drop, the fundamentals of Bitcoin remain bullish. Other data provided by Glassnode pointed out that the number of addresses with an estimated balance of more than $0 has increased.

This indicator indicates that the increase in adoption rate is likely to be triggered by the approval of the El Salvador Bitcoin law and its growth and its second-tier solution, the Lightning Network. As the price of BTC surged from its annual opening price ($29,000) to a record high ($69,000), the market became overheated.

The approval of the first ETF linked to BTC in the United States did not promote the above situation, and the positive financing interest rate of the derivatives industry has increased. After the recent BTC crash, the indicator has returned to a neutral state.

Related Reading | Bitcoin resumes its decline, what might trigger more downsides

However, experts believe that before BTC can re-enter price discovery, short-term holders and speculators still need to appear. NewsBTC’s editorial director Tony Spilotro predicts that Bitcoin will retest the support level of approximately US$56,000 in the short term. The pattern is similar to the pattern before BTC broke the previous range in September and broke US$65,000 for the first time since its inception.

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BTC is dancing at the support level on the 4-hour chart.Source: Tony Spilotro via TonyTrades BTC trading channel



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