Bitcoin Looses Momentum as BTC Fell Down to $26K Again

Bitcoin (BTC) faced a dramatic turn after surging on Tuesday above $27K but falling down again to $26K the next morning. After turning down the previous month's hikes, it was observed that BTC made a Head and Shoulders pattern which later resulted in a decline from $29,752 to $25,690.

For the past 2 weeks, Bitcoin is trading between a very tight range of $27K and $26K which indicates that neither bears nor bulls are capable of making much change. Following the same, recent US economic news has also affected Bitcoin prices since the FED meeting. The falling US Debt Ceiling is also one of the main reasons why Bitcoin along with the world economy is shooked. 

As the US economy is in fiscal Deficit since 2001, the condition is getting worse after US Dollar weakened and purchasing power decreases. This affected Bitcoin price inversely as by buying more Bitcoins, Investors pulled their hands back due to the rising fear of losing money. In addition, the memecoin mania has also gained much attraction and dragged all the investors to gain higher returns instantly.

Bitcoin Sell-Side Ratio Dropping: Positive Signs for BTC

Crypto analyst under the name "Checkmate" has recently observed that the Bitcoin sell-side ratio is dropping.  As per the analyst, Bitcoin's sell-side Risk ratio approaches all-time lows, indicating hesitant investors reluctant to spend coins in the current price range, whether in profit or loss.

This weariness on both sides signals that the market will make substantial swings in the near future. Realised Profit and Loss measures are regarded as significant Bitcoin analytical tools. They provide insights into BTC holders' sentiment, capital movements, and behavioural tendencies.

If the current market condition is correct, Bitcoin would typically endure a reaccumulation period of roughly 12 months following a bottom. According to the analyst's study, the base case scenario indicates a volatility range of $40,000 to $22,000.

Bitcoin Price Analysis

Bitcoin (BTC) is currently trading at $26,813.86 with a 24-hour trading volume of $12,582,806,173. This indicates a -2.08% drop in the last 24 hours and a -0.98% drop in the last 7 days. Bitcoin has a market valuation of $519,709,869,255 with a circulating supply of 19 million BTC.

Bitcoin's price has remained well above the $26,000 mark. The price created a base and was able to settle above the $26,500 resistance zone. The bulls stayed active above $26,500, kicking off a strong rise.

A move above the 23.6% Fib retracement level of the crucial fall from the $29,851 swing high to the $25,811 low occurred. Furthermore, the BTC/USD pair broke above a significant negative trend line with resistance above $27,100 on the daily chart.

The next significant resistance level could be around $27,840, representing the 50% Fib retracement of the crucial slide from the $29,851 swing high to the $25,811 low. A clear break above the $27,480 and $27,850 resistance levels might drive the price up to $28,500.

Conclusion

In conclusion, Bitcoin is experiencing a bearish movement right now. The technical indicators are pointing towards a "BUY" signal which signifies that the current market is somehow creating a Buying opportunity for investors.

Also Read:

• Bitcoin Price Prediction