The price of bitcoin has declined over the past few days, taking back almost all of the gains from the past green week. In fact, bitcoin has lost over $6K in the past three days.
However, there is a positive sign for the bulls: despite the fear and uncertainty in the market, the difference between long-term holders (accumulation) and short-term holders (spend in losses) is far more significant than in this crash. 50% drop in May 2021.
technical analysis
By: adris
daily chart
As mentioned in our previous analysis, the price was rejected impulsively from both the 100-day SMA and the $45K resistance level.
BTC even broke below the 50-day EMA, causing fear once again across the market. However, there is still a chance to bounce back above the important moving average line over the past few days. In that case, we can see another attempt towards $45K resiatnce.
On the other hand, if BTC fails to recover over the next few days, the next support level would be the $36K area, which the bulls tested last Thursday on the day of the Russian attack.
4 hour chart
On the 4-hour time frame, it was clear (and mentioned here) that the uptrend was showing weakness while testing the crucial $45K resistance, closing with a big wick on the upside.
The RSI also indicated that the price was ‘overbought’ at the top of the range, with values above 70.
Additionally, a bearish RSI divergence was also observed by this oscillator, which points to a possible correction in the near term. Currently, the RSI is entering an oversold area on the 4-hours time frame, which is indicating that a short-term bottom may be near.
The price is also forming a continuation pattern in the shape of a bearish flag and a breakout of the lower trend line could cause a lot of pain towards the $30K barrier. The pattern will be invalidated in case the upper line breaks bullish.
onchain analysis
By: Shayan
The chart below shows the bitcoin spent output age band since October 2020.
This metric is known as the spent output age band (%), and is the collection of all spent outputs created within a specific age band. Each colored band shows the total value of the spent output generated within the specified age band. This indicator combines the behavior of long-term and short-term investors combined with price.
As can be seen, there was more activity in the early stages of the bull run in Q1 2021, which means higher demand. Comparing the decline from $65K to $29K in May 2021 and the recent drop from $69K to $33K (January 2022), it can be seen that long-term investors will realize higher gains in May 2021 Happened.
Currently, a high proportion of market activity comes from retailers who sell their coins under psychological pressure, while long-term holders are holding and hoarding.
PrimeXBT Special Offer: Use this link to register and enter code POTATO50 to get up to $7,000 on your deposit.
Disclaimer: The information found on Cryptopotato is that of the cited authors. It does not represent the opinion of Cryptopotato whether to buy, sell or hold any investment. You are advised to do your own research before taking any investment decision. Use the information provided at your own risk. See disclaimer for more details.
Cryptocurrency charts by TradingView.