After a week of roller coaster performances, Bitcoin’s price has been relatively stable over the weekend. It’s difficult to predict the direction of the cryptocurrency market with the Middle East tensions escalating.
The technical structure and the on-chain of the leading cryptocurrency suggest that the bear is not over yet. The latest evaluation of the Bitcoin price on the chain suggests it is vulnerable to volatility.
BTC Price Preparing for Another round of Bearish Momentum?
Boris, an on-chain expert from the X platform has posted a blog on this new site. argued This means that Bitcoin’s price is still within the market structure that leads to downward movements. This observation is made based on a rising active supply ratio for long-term holders (LTH), which indicates an increased level of activity in the LTH stock.
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Boris says that volatility is usually seen in the supply of long-term holders before there are major price increases. This is the phase where Bitcoins are strategically distributed in the correct locations to prepare for future market activity.
Boris said:
These coins are distributed gradually as the market increases. The market will typically shift into a sideways pattern when demand starts to weaken. This allows the distribution to proceed.
The Bitcoin market is a growing one. enter a downward move Once the distribution phase has been completed, new positions will be created. The price of BTC, for example, has decreased from approximately $95,000 down to about $60,000.
The Bitcoin price drop hasn’t reversed the upwards trend of the long-term supply. This suggests that a downside move is still possible. “Even if we see upward movements in the coming weeks, these are likely to represent a liquidity illusion occurring within the broader distribution phase,” Boris said.
Analysts noted that the $60,000–$62,000 range Although this zone appears as a support area, current market structures suggest that it could be just a liquidation generation zone in a redistribution stage. The term liquidity zone is used to describe a technical zone with high concentrations of stop loss and limit orders.
Boris concluded that Bitcoin’s prices are likely to move downwards towards the end of this year, given the data available.
Bitcoin Price at a Glance
BTC’s price is around $66,228 as of the time of writing. This represents a decline of about 1% over the past 24-hours.
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Featured image is from iStock. Chart from TradingView
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Source: www.newsbtc.com
