Bitcoin continues to grapple with sustaining its position above crucial support levels, especially as market conditions weaken ahead of the holiday season.
Bitcoin Intraday Trading Charts
In recent weeks, Bitcoin exhibited an ascending consolidation pattern around the $108,000 resistance region. Heightened selling pressure from large market participants led to a sharp 15% decline. Support was found at approximately $90,000, aligning with the middle boundary of a longstanding bullish channel, serving as a critical defense against deeper corrections.
Bearish Indicators Impacting Price Action
TradingView data reflects Bitcoin's ongoing struggle, with BTC/USD still down $13,000 from recent highs. Analyst Rekt Capital noted a Bearish Engulfing candlestick on the weekly chart, signaling a potential multi-week correction.
On-Chain Metrics: Network Activity Declines
Bitcoin's active addresses, a key on-chain metric, reveal a divergence between price action and network activity. While the 100-day moving average has rebounded, it has not reached its all-time high. The decline in global money supply has also negatively impacted Bitcoin's price dynamics.
Despite macroeconomic pressures, Bitcoin's supply deficit may mitigate negative impacts due to its increasing illiquidity.
