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Bitcoin: How THIS can push prices back down to $85K
A key Bitcoin metric suggested the possibility of a price drop towards $85k again.
In recent days, Bitcoin [BTC] has been struggling to gain momentum and break out of its current consolidation. Despite some positive sentiment in the market, many are still worried about the potential for further losses. A recent tweet from Alphractal, a popular data analytics platform, has sparked concerns among traders and investors alike.
According to the analysis provided by the platform, Bitcoin’s Short-Term Holder Realized Price metric suggests that there is a possibility of a price drop towards $85k again in the near-term. This metric represents the average acquisition price of Bitcoin for investors considered short-term holders, typically defined by the movement of coins held for less than 155 days.
The data suggests that if BTC fails to hold above the current resistance level of around $94,000 and falls below the psychological barrier of $85,000, it could be disastrous for the price. Furthermore, a bear market may follow as a result.
This analysis has sparked concerns among traders and investors who are watching closely for any further developments in the Bitcoin market.
It is not just this metric that suggests there may be trouble ahead. A recent report from AMBCrypto also highlighted that selling pressure on BTC was rising significantly, as spot exchange reserves had recently recorded a significant uptick with 20k BTC inflows. This data indicates that investors are selling their holdings en masse, which would have a negative impact on prices.
Additionally, the Money Flow Index (MFI) has registered a downtick, suggesting that there is no end in sight for the bearish trend currently dominating the Bitcoin market.
In fact, if we take a closer look at CryptoQuant’s data, we can see that Bitcoin’s taker buy/sell ratio turned red. This suggests that selling sentiment is dominant in the futures market.
The rise of selling pressure could ultimately push prices back down to $85K once again, further exacerbating the current bearish trend and potentially leading to a more severe decline than previously anticipated.
The post also touched on Japan’s plunging Yen which may help Bitcoin.
Source: ambcrypto.com
