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Bitcoin struggles to reclaim $65,000

Cryptopolitan2024/07/18 19:58
By:By Jai Hamid

Share link:In this post: Bitcoin is stuck around $63,488 and can’t seem to hit $65,000 again due to bearish trends and heavy selling pressure. Key indicators like moving averages, RSI, MACD, and OBV all point to a tough market for Bitcoin right now. Long-term holders and global distribution show strong support, but short-term trading signals are still bearish.Disclaimer. The information provided is not trading advice. Cryptopolitan.com holds no liability for any investments made based on the information pr

Bitcoin is having a tough time getting back to $65,000. Right now, it’s stuck at $63,488. Let’s break down why Bitcoin’s price is struggling and what on-chain data and technical indicators are telling us.

Indicators support the bears

Bitcoin’s 50-period moving average (MA) is sitting at $63,838, while the 200-period MA is at $64,509. When the price is below these averages, it usually means the market is bearish.

The middle Bollinger Band is at $64,299, with the upper band at $65,390 and the lower band at $63,209. Bitcoin’s price is hugging the lower band, which means it’s oversold. We could see a rebound if buyers step in strong.

Source: TradingView

The RSI is at 30.34, which is close to the oversold mark of 30. BTC might be due for a bounce back, but it also shows there’s heavy selling pressure. The MACD line is at -93.84, and the signal line is at -222.28. 

A negative MACD and a histogram below zero are the strongest bearish signs yet. There is a lot of downward pressure on Bitcoin. Then we have the On-Balance Volume that’s at -13. This means there’s more selling volume than buying volume.

On-chain is also bearish

Looking at BTC’s on-chain data , 87% of holders are making money at the current price, while 3% are breaking even and 10% are losing money. Bitcoin has always had strong support from its long-term investors. They’ve been through it all.

Source: IntoTheBlock

When we look at how long people have been holding Bitcoin, 71% have held it for more than a year, showing long-term confidence. About 25% have held for 1-12 months, and 5% for less than a month, showing some short-term traders.

In the last week, transactions greater than $100,000 are worth $92.22 billion, thanks to spot ETFs raking in a hell of an inflow all through the week. Positive netflows into exchanges is $273.38 million over the last week.

Source: IntoTheBlock

This means more Bitcoin is being moved to exchanges, likely for selling or trading, supporting the short-term bearish pressure. Most on-chain signals are bullish. The overall sentiment is leaning towards upward price movement.

Bitcoin might test support levels around $63,000. If it holds there and the RSI moves up, we could see a rebound towards $65,000. But if selling continues and the price drops below $63,000, the next major support level is around $60,000.

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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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