The current situation in the Bitcoin market demonstrates significant bearish pressure following a recent breach of key support levels. Let's analyze what this may mean for investors.
Support Breached and Current Levels
Bitcoin is currently priced at around $110,700 after breaking critical support at $112,000, which has now flipped to resistance. This indicates a decline in buyer interest. The price has hit a ceiling twice at approximately $124,000 but failed to break above, leading to a bearish trend characterized by lower highs and lows.
Bearish Signal on Weekly Chart
On the weekly chart, the MACD indicator has generated a bearish crossover, known as a 'death cross.' This occurs when the MACD line crosses below the signal line, indicating a potential trend reversal. Historically, such crossovers have preceded prolonged bear markets.
Signals from Liquidity and Long-term Holders
According to CryptoQuant data, the 30-day moving average of Taker Buy/Sell Ratio has reached its lowest point since May 2018 at 0.95, indicating bearish selling prevails across most exchanges. Despite the selling pressure, liquidity is largely concentrated above the current price, creating opportunities for a potential short squeeze.
In current conditions, Bitcoin is facing bearish trends, yet there is potential for unforeseen changes in the market. Investors should closely monitor liquidity shifts and the behavior of long-term holders to better navigate upcoming forecasts.
