What happens on Thursday depends on whether bulls can get momentum back or bears try to bring Bitcoin (BTC) down even more. A crucial technical support level is around $70,500. The next course of action for Bitcoin will be decided by that. Meanwhile, institutional demand is reticent to grow BTC exposure, and market mood is cautious due to uncertainties regarding the US-Iran truce.
Bitcoin has reclaimed important levels, such as the 50-day exponential moving average (EMA) at $70,000 and the 200-day EMA at $68,000, where it has found support, during its 8% rally over the previous three days to $72,000. There is a buy wall zone for Bitcoin right now. According to analysts, the present zone—the region between $67,700 and $70,000—is a support zone.
Key Phase for Price Direction
Investors bought around 386,100 BTC over the last three months, and the bullish argument for BTC currently rests on breaking over a sell wall between $72,000 and $73,000. It has to break past the $73,000 sell wall before it can keep climbing to $75,000. At the time of writing, Bitcoin is trading at $71,251, down 1.24% in the last 24 hours as per data from CMC.
Between the short-term holder cost basis level of about $80,000 and the true market mean of $78,000, Glassnode’s risk indicator shows another significant obstacle farther up. At this point, it becomes quite significant.
Recent purchasers looking to exit at or around breakeven are expected to exert significant distribution pressure on any rise into this zone, so the mid- to long-term bias is still skewed to the negative until price regains this level.
If the bulls want to validate a trend shift, they need to break out of the $76,000-$80,000 level. Bitcoin onchain transfer volume and spot trading volume have remained below average, indicating that the market is continuing in its cooling down phase. On Thursday, the seven-day moving average of onchain transfer volume was 660,000 BTC, down from 1.36 million BTC less than 30 days ago—a decrease of almost 50.5%.
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Source: https://thenewscrypto.com/bitcoin-at-a-crossroads-as-bulls-and-bears-clash-near-key-support/
