Bitcoin (BTC) Price Momentum Slows, Risk of Decline Rises
Bitcoin (BTC) hit an all-time high on December 17, but is still 5% below the $110,000 mark. Indicators such as ADX and NUPL point to a slowdown in upward momentum, suggesting a possible shift in market sentiment.
While Bitcoin remains in the “belief-denial” zone, underscoring continued confidence, its failure to break through key resistance levels has prompted caution. The next few days will determine whether BTC regains upward momentum to test $110,000 or faces further correction towards key support levels.
Bitcoin’s Current Trend Shows Possible Sentiment Shift
Bitcoin The DMI chart shows that its ADX is currently at 29.2, well below the 40-plus points when Bitcoin hit its all-time high two days ago. The decline in ADX suggests that while the trend remains relatively strong, its strength is waning.
As bearish momentum builds, the market appears to be moving toward a period of consolidation or possibly further downside.
ADX (Average Directional Index) measures the strength of a trend, with values above 25 indicating a strong trend and values below 20 indicating a weak or no-trend market. Currently, BTC has a D+ of 18.1 and a D- of 27.8, indicating that bearish forces are dominant and sellers outnumber buyers in the short term.
This imbalance is likely to push BTC prices lower unless buyers regain control and D+ rises above D-, signaling a return of bullish momentum.
Bitcoin NUPL Still Far From the Next Threshold
Bitcoin NUPL currently stands at 0.60, down from 0.628 two days ago when Bitcoin hit its all-time high. The drop represents a slight decline in unrealized profits for Bitcoin holders, reflecting some profit-taking or a cooling market after the recent surge.
Despite this decline, bitcoin price Still firmly in the “conviction-denial” zone, which suggests investor confidence, but caution is starting to emerge.
NUPL (Net Unrealized Profit/Loss) measures the sum of unrealized gains or losses for BTC holders, dividing market sentiment into different stages.
Values above 0.5 belong to the “belief-denial” zone, values below 0.5 mark the “optimism-anxiety” phase, and above 0.7 mark the “euphoria-greed” phase, usually associated with market tops. Bitcoin The current level of 0.60 indicates that while market sentiment remains bullish, it is far from extreme greed and remains comfortably above anxiety levels.
BTC Price Prediction: Is $110,000 Still Possible in 2024?
if Bitcoin If the price breaks the resistance at $103,638, it may gain enough momentum to test all-time highs around $108,000.
Success beyond this level may be bitcoin price It reached $110,000 for the first time, indicating continued bullish momentum and strong market confidence.
However, the EMA lines and ADX suggest that the current trend may be weakening, increasing the likelihood of a bearish move. If the short-term moving average is below the long-term moving average, a stronger downtrend may be forming.
in this case, bitcoin price A test of the support at $94,000 is likely, and if it fails to hold, the price may fall further to $90,000, with a possible 11.7% retracement from current levels.
Disclaimer
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