Bitcoin Lands on $26K Again, Will the Previous Bull Run Still Reign?

Bitcoin's price is currently in a consolidation phase, having achieved the 100-day moving average of $26,844. However, two key support points ahead of it on its path might potentially arrest the current slide and kickstart the next positive surge.

The main reason for this consolidation is due to the dilemma between bears and bulls as BTC couldn't find a pot to make a bullish/bearish move. It's mostly due to the ongoing uncertainties between US Govt and crypto exchanges. 

According to Brian Armstrong, CEO of Coinbase, the United States is losing technological leadership in the creation of financial systems as a result of its stance on cryptocurrencies, which is driving innovation elsewhere. 

Countries such as the United Kingdom, the United Arab Emirates, Brazil, Japan, the European Union, Australia, and Singapore are developing regulations to position themselves as cryptocurrency hubs and attract business. 

US Entities Holding 11% Less Bitcoin Compared to 2022 

The dominance of Bitcoin supply has experienced a remarkable transition over the last two years, revealing a substantial shift in market patterns. According to current data, US companies now hold around 11% fewer Bitcoin ($BTC) than they did in June 2022, while investors active during Asian trading hours have increased their Bitcoin holdings by a significant 9.9%.

This turnaround in Bitcoin supply dynamics contrasts sharply with the previous bull cycle, which occurred in 2020-21, ushering in a new age of market behaviour. Glassnode, a well-known on-chain analytics firm, reported these findings.

The current market correction, however, has resulted in a reversal of this pattern. Recent data shows a jump in Bitcoin and Ethereum inflows, indicating sell-side activity, whereas stablecoin inflows have decreased in comparison. This breakthrough could herald a market revolution as investors reallocate their capital to lower-risk digital assets.

These growing undercurrents suggest a net capital rotation and liquidity migration to alternative digital assets with lower volatility and perceived lower risk profiles.

Bitcoin Price Analysis

Bitcoin (BTC) is currently trading at $26,823.98 with a 24-hour trading volume of $10,661,661,694. This indicates a -1.24% drop in the last 24 hours and a -3.88% drop in the previous 7 days. Bitcoin has a market worth of $520,207,883,200 and a circulating supply of 19 million BTC.

During the consolidation corrective stage, BTC dipped just below the ascending channel's main trendline and tested it as a pullback. The Bitcoin price, on the other hand, continued its downward trajectory by producing small successive red candles and temporarily halted around the 100-day moving average of $26.9K.

If it falls below the 100-day moving average, the lower channel threshold of roughly $24K and the 200-day moving average of $23K might be price targets.

If Bitcoin finds support at the 100-day moving average, an attempt to break through the key resistance level at $30K is the most likely scenario.

Source: TradingView

Conclusion

In conclusion, Bitcoin is experiencing a bearish movement currently. As per the analysis, the 200-day moving average is below the trading price but 100-day MA is still the mark to reach. Overall, Bitcoin is passing through a technical downturn and will need extra bullish pressure to surge above the $27K.