Bitcoin chose violence. First crypto traded at $57,873, with a 3% daily loss and a weekly loss of 11.2%.
Bitcoin rejected a push to close to $60,000 after it trended down for 2 hours. It is possible that the benchmark cryptocurrency might have reacted against the possibility of Jerome Powell being reappointed as the U.S. FED Chair for a second term.
Read Related Reading| This Bitcoin Metric Hints At Bottom, Is BTC Out The Woods?
Material Indicators data suggests that investors who placed orders worth more than $1 million were responsible for the uptrend. As seen in the chart below, these investors, along with retail investors and others with bid orders above $1,000 sold as soon as BTC’s price reached $59,000.
This chart shows there is virtually no resistance to Bitcoin’s current levels. To the downside, significant supports (below the blue line, BTC’s price, in the chart) sit at around $55,000, and to the upside, $60,000 stands as the biggest resistance (above the blue line in the chart) for BTC’s price in the short term.
Glassnode data shows that the short-term long Term realized value (SLRV), for Bitcoin has fallen below 0.4. As seen in the chart below, whenever BTC’s price hits these levels, the cryptocurrency tends to appreciate.
You may also like these related readings| Bitcoin Jumps to $58K; Why Bears Might Spill More Blood
On-Chain College pseudoonym analysis commentedThe following is a summary of what the indicator means for Bitcoin over longer timeframes.
It is interesting to see the relation between the ratio now and that of earlier this year. Notice the SLRV Ratio rising as price rose in the beginning of this year vs. a steady decline/consolidation as price rose a few months ago… Bullish
Bitcoin on the Moon Mission
Despite the recent downwards price action, Bitcoin’s fundamentals remain bullish. Glassnode also provided additional data that showed a rise in addresses having an estimated balance of at least $0.
This indicator indicates an increase in adoption, most likely due to the approval of Bitcoin Law in El Salvador as well as the growth and second-layer solution Lightning Network. Since BTC’s price made a run from its yearly open ($29,000) to an all-time high ($69,000), the market became overheated.
The approval of the first BTC-linked ETF in the U.S. didn’t contribute to the above with the derivatives sector recording an increase in positive funding rates. This metric has returned to a neutral state after BTC’s recent crash.
Bitcoin Resumes Decline, What Could Trigger More Downsides| Bitcoin Resumes Decline, What Could Trigger More Downsides
But experts think that BTC must still flash out the short term holders and speculators, before it re-enters price discovery. NewsBTC’s Editorial Director Tony Spilotro expects Bitcoin to retest support around $56,000 in the short-term following a similar pattern that in September before BTC broke away from a previous range and above $65,000 for the first time since its inception.