BTC Price Tests Key Support Amid Cautious Whale Accumulation
Bitcoin (BTC) hit an all-time high on December 17, but has since fallen below $100,000. Key indicators such as ADX and cautious whale activity suggest that the downtrend is weakening.
As Bitcoin approaches key resistance and support levels, its next move could significantly impact its price direction in the coming days.
BTC ADX shows downtrend weakening
BTC’s ADX is currently 18.81, down sharply from nearly 50 7 days ago. The drop highlights the apparent weakening in the intensity of Bitcoin’s ongoing downward trend.
Rapid decline in ADX points to driving forces Bitcoin Recent price action is weakening, leaving the market in a state of diminished directional strength.
The Average Directional Index (ADX) measures the strength of a trend, whether up or down, on a scale from 0 to 100. Values above 25 generally indicate a strong trend, while readings below 20 indicate a weak or non-existent trend. BTC’s ADX is 18.81, and this low reading means that the current downward trend may be losing steam.
therefore, Bitcoin can enter Short-term consolidation phases are characterized by decreasing volatility and sideways price action.
Bitcoin whales start accumulating again
The number of Bitcoin addresses holding at least 1,000 BTC dropped significantly between December 16 and 17, from 2,108 to 2,061. The decrease highlights significant selling or reallocation of holdings by large investors.
The indicator then remained stable until December 24, when it dropped further to 2,049. This change in whale activity could have an impact on Bitcoinas these addresses often represent entities that have a significant impact on price movements due to their ability to conduct large transactions.
track these so-called Bitcoin whale Crucial, as their buying and selling behavior can often serve as a leading indicator of broader market trends. When whales accumulate, it signals confidence in Bitcoin’s potential price growth, while a massive sell-off may signal caution or profit-taking that could trigger a market decline.
After a sharp decline in whale numbers, the indicator began to rise slightly and currently stands at 2,056 whales. This growth, while slow, suggests that confidence among major holders is cautiously returning. This gradual accumulation may signal stabilization bitcoin price In the short term.
BTC price prediction: Can it return to $100,000?
bitcoin price It is currently approaching the key resistance level of $94,200. A break above this level could open the door to further upward momentum, with a test of $98,700 and then $102,500 possible if the uptrend strengthens.
Despite the possibility of upward movement, Bitcoin The EMA lines still indicate a bearish pattern, with the short-term EMA below the long-term EMA.
This allocation reflects the lingering bearish sentiment in the market. If the downtrend resumes strong, Bitcoin may retest the $90,700 support. If this support fails to hold, the next downside target could be $88,089.
Disclaimer
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