Bitcoin chose violence. The leading crypto by market cap is trading at $ 57,873 with a 3% loss on the daily and an 11.2% loss on the weekly chart.
After pushing nearly $ 60,000, Bitcoin was rejected and has moved lower in the last 2 hours. The benchmark crypto might have reacted to the potential reappointment of US Fed President Jerome Powell to his post for a second term.
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Data from Material Indicators suggests the upward move was driven by investors with orders estimated to be worth over $ 1 million (whales). As the chart below shows, these investors, along with retail investors and others with buy orders over $ 1,000, sold as soon as the price of BTC hit $ 59,000.
As the chart shows, there is almost no resistance or support for Bitcoin at the levels. On the downside, significant supports (below the blue line, the price of BTC, in the chart) is around $ 55,000, and on the upside, $ 60,000 is the greatest resistance (above the blue line in the chart) for the short-term BTC price.
According to data from Glassnode, the short-term and long-term realized value (SLRV) for Bitcoin fell back below 0.4. As the chart below shows, whenever the price of BTC hits these levels, the cryptocurrency tends to appreciate.
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On-Chain College Pseudonym Analyst commented the following on what this indicator suggests for Bitcoin in longer time frames:
What I find most interesting is the relationship between this ratio between now and the increase earlier this year. Notice the SLRV ratio is increasing as prices rose earlier this year versus a steady decline / consolidation as prices rose a few months ago… Bullish
Bitcoin still on a mission to the moon?
Despite the recent price drop, Bitcoin’s fundamentals remain bullish. Additional data provided by Glassnode noted an increase in the number of addresses with an estimated balance above $ 0.
This metric indicates an uptick in adoption most likely triggered by the approval of Bitcoin’s law in El Salvador and the growth and its second layer solution Lightning Network. Since the price of BTC rose from its annual opening ($ 29,000) to an all-time high ($ 69,000), the market has become overheated.
The approval of the first BTC-linked ETF in the United States did not help the above, with the derivatives industry seeing an increase in positive funding rates. This metric returned to a neutral state after the recent BTC crash.
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However, experts believe that BTC has yet to identify short-term holders and speculators before returning to price discovery. NewsBTC Editorial Director Tony Spilotro expects Bitcoin to retest support of around $ 56,000 in the near term, following a pattern similar to September before BTC split from a previous range and surpassed $ 65,000 for the first time since its inception.