Bitcoin has declined by 1.7% and the Inter-Exchange Flow Pulse (IFP) has turned negative, suggesting decreasing trader confidence. If selling pressure increases, prices may fall to $92,000. Bitcoin struggles to maintain key resistance levels and may face deeper declines if the $97,000 support cannot be reclaimed.

Bitcoin has recently exhibited sideways movement, experiencing a decline of 1.7% within the last 24 hours. The more alarming development arises from a warning issued by CryptoQuants analyst Maartunn regarding the Inter-Exchange Flow Pulse (IFP), which has turned negative. This shift indicates that traders may be losing confidence in Bitcoin’s potential for growth, suggesting that increased selling pressure could lead the cryptocurrency’s value to plummet as low as $92,000.

The Inter-Exchange Flow Pulse (IFP) serves as an indicator of Bitcoin’s movement between spot and derivative exchanges. When Bitcoin transfers from derivative exchanges to spot markets, it indicates that traders are liquidating long positions and adopting a more cautious stance. According to Maartunn, the recent negative trend in the IFP implies a significant exit of Bitcoin from derivative exchanges. This trend points towards a lack of confidence in Bitcoin’s upward trajectory.

Historically, negative IFP trends have resulted in market slowdowns or corrections, indicating that Bitcoin’s price may encounter downward pressure as traders tend to move away from high-risk positions. If the current trend persists, Bitcoin might experience diminished volatility or potentially face deeper corrective movements.

At present, Bitcoin is struggling to breach the $98,800 mark, having faced multiple rejections while attempting to stay above the $95,000 level. Following a peak of $98,800, Bitcoin has witnessed a loss of momentum, descending below critical support levels at $97,000 and $96,000. The breach of a bullish trend line near $97,500 signals that sellers are beginning to dominate the market, with Bitcoin currently trading around $96,100, which lies beneath the 100-hourly simple moving average.

Should Bitcoin fail to reclaim the $97,000 level, a further decline may ensue, guiding the price towards the next significant support zone at $92,200. Such developments warrant close monitoring as they may impact investors and market participants’ strategies moving forward.

In conclusion, the recent negative trend in the Inter-Exchange Flow Pulse suggests dwindling confidence among Bitcoin traders, potentially leading to a downward trajectory for the cryptocurrency. The inability to surpass key resistance levels and the subsequent break of important bullish trend lines raise concerns about future price movements. Continuous observation of these indicators will be crucial for understanding Bitcoin’s market direction in the coming days.

Original Source: coinpedia.org

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