Fri, 26/07/2024 – 10:40
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Keeping a close eye out for the development of a mini death cross—the crossover between the 50 and 100 EMA moving averages—as the price of Bitcoin saw a drop. It is not as scary as the 100 and 200 EMA crossover but it is a sign of possible increased selling pressure.
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Nevertheless it appears that Bitcoin has escaped this bearish pattern and is unlikely to face it. Rebounding from important support levels and continuing on its upward trajectory the price action of Bitcoin has shown resilience. The mini death cross scenario has not yet materialized since the 50 EMA is still above the 100 EMA. This suggests that the increased selling pressure that some had anticipated might not appear in the market.
This optimistic perspective is supported by on-chain data. 72% percent of Bitcoin addresses are in the money meaning that they contain Bitcoin that was bought for less than its current market value.
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This points to a high degree of investor confidence and possible support levels that might stop additional losses. In addition the correlation between volume and price suggests that Bitcoin is receiving a consistent stream of capital inflow which is essential to keeping its price levels stable.
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Currently the price is at a critical point of $67,105 where almost 89,000 addresses are at the money forming a strong support zone. The general mood of the market is still cautiously optimistic. Bitcoin’s ability to hold above significant moving averages and support levels suggests that its bullish trend may continue despite the recent volatility. To see which way the market may move, traders and investors should closely monitor rapid price changes and on-chain metrics, to foresee a surge in selling pressure.
