Bitcoin’s price continues to drift in the $30,000 range. Market sentiment points to extreme fear and uncertainty regarding the top crypto market cap trade without any clear direction.
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At the time of writing, BTC’s price trades at $29,500 with a 1% profit in the last 24-hours.
According to Arcane Research’s report, Bitcoin is making history in the last weeks. The current downtrend could be one of the worst since BTC’s inception as the cryptocurrency recently recorded its first eight consecutive weeks in the red.
The research firm claims BTC’s price established important support at $29,000. This level coincides with 2021’s lowest point during the May-July bearish price action.
This level should provide strong support to the cryptocurrency and be used as a point of reference for future price actions. If this level fails, Bitcoin could retest the $25,000 mark and the $20,000, which stands as the cryptocurrency’s previous all-time high.
Jarvis Labs and Material Indicators provide clues to what’s happening in the market following the latest major downturn. During this time, the market usually enters a long consolidation period as liquidity pools below and above BTC’s price are formed.
Jarvis Labs claims that liquidity has increased by $45,000 to $40,000 in the last two weeks. In contrast, liquidity at $28,000 and $25,000 saw a spike.
Market participants large enough to incentivize the movement of cryptocurrency prices towards these liquidity pools are often incentivized. This suggests a potential retest of BTC’s price current lows and critical support zone to grab liquidity below before the cryptocurrency can move higher. It is possible that the opposite might be true.
Who Buys The Bitcoin Dip
Additional data provided by Material Indicators, for low timeframes, indicate important support for BTC’s price at around $29,000. These levels are one of the most significant supports recently, with $45 Million in bidding orders.
This suggests that the bears may have difficulty pushing Bitcoin’s price below current levels.
The support of $29,000 appears strong for longer time frames. Material Indicators show that there has been an increase of buying pressure among several investors.
Investors with small bid orders of around $100 to $1,000 (green and yellow in the chart below) and investors with large orders of around $100,000 have been buying BTC’s current price action.
However, those with large orders (brown in chart below) exceeding $1 million appear to have sold. This could be contributing to BTC’s consolidation.
BTC might see some relief from Jarvis Labs’ liquidity pools if the whales lower their selling pressure. Market participants need to be aware of the possibility of a retest at $25,000 or $28,000.
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These levels of liquidity could be more appealing, particularly if Bitcoin prices drop in the near future.