Bitcoin Set to Enter New Price Discovery Zone Amid Market Volatility
Bitcoin has regained the $90,000 mark after recent fluctuations, with a potential entry into a new price discovery zone between $70,000 and $90,000. Key resistance is anticipated at $100,000. Despite a recent 3% rebound, overall selling pressure is increasing, and whale transaction volumes have remained neutral since late 2022, indicating waning investor sentiment and reduced network activity.
Bitcoin’s price has recently taken a positive turn, regaining the crucial $90,000 mark after enduring significant bearish pressure attributed to macroeconomic factors. After achieving a peak of $94,000, following a notable announcement from US President Donald Trump regarding a crypto strategic reserve, Bitcoin subsequently decreased to $82,000. However, a renewed wave of optimism among investors suggests potential for further price increases.
Currently, Bitcoin is navigating a period of volatility, which has hindered its ability to sustain upward momentum consistently. Advanced on-chain data platform Alphractal recognizes a critical moment for Bitcoin, indicating that the cryptocurrency is approaching a price discovery zone amidst rising bullish sentiment, despite the broader market’s turbulence.
This prospective price recovery zone spans between $70,000 and $90,000, suggesting a $20,000 price gap. Within this range, key derivatives metrics, including Open Interest (OI), trade count, and buying volume, indicate a lack of prior historical consolidation. The $100,000 level is anticipated to become the next major resistance, while the $70,000 mark is expected to serve as support once Bitcoin reaches this recovery zone.
As Bitcoin approaches this stage, the potential for liquidations in long and short positions exists due to unstable price conditions. A surge in bullish momentum may lead to upward movements in price levels. CoinMarketCap indicates that Bitcoin has witnessed a nearly 3% rebound within the last 24 hours, bringing its price just above $90,000, though ongoing selling pressure is evident, especially with trading volume dropping over 26%.
Despite the fluctuations in Bitcoin’s price, sentiment appears to be diminishing among investors. Notably, the transaction volume of large investors—often referred to as whales—has remained relatively neutral since November 2022, failing to match the significant movements observed in 2021. Furthermore, on-chain volume metrics indicate a declining trend, as transaction levels have occasionally reached lows not seen since 2014, signaling reduced network activity.
The article highlights Bitcoin’s recent price movements, reclaiming the $90,000 mark after fluctuations due to macroeconomic uncertainties. As it approaches a potential price discovery zone between $70,000 and $90,000, there is renewed investor optimism. However, challenges persist with declining whale transaction volumes and overall market volatility, underscoring the complexity of Bitcoin’s journey towards sustained growth.
Original Source: bitcoinist.com
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