The current value of Bitcoin might be dropping below a crucial point, possibly leading to a more significant downturn over the next few weeks.
Technical Analysis
By Edris Derakhshi (TradingRage)
The Daily Chart
Over the past two months, the asset has failed to move beyond the $100,000 resistance level on a daily basis, instead falling towards the $92,000 support area. This recent break below the support could indicate further potential declines.
If we were to lose this current level, it’s possible that we might see a drop towards the $85,000 region, with potential for an even steeper decline towards the $80,000 range.
The 4-Hour Chart
Given the current context, it appears that the price is facing strong resistance at the $92K support area, propelled by significant bearish energy. Since this level has previously held the price on multiple occasions over the past few weeks, it’s reasonable to conclude that it may no longer be as robust, suggesting a high likelihood of further market decline.
The RSI also shows values below 50%, further increasing the likelihood of a deeper correction in the short term.
On-Chain Analysis
By Edris Derakhshi (TradingRage)
Bitcoin Coinbase Premium Index
As Bitcoin’s price dips below a crucial resistance point, it could be helpful to pinpoint the source of the market’s sell-off. In such situations, the Coinbase Premium Index may prove invaluable as an analytical aid.
This measurement checks if American investors are preferring to buy or sell more Bitcoin compared to international investors, as it compares the exchange rate for Bitcoin traded against the US Dollar on Coinbase (BTD/USD) with the exchange rate for Bitcoin traded against Tether USD on Binance (BTC/USDT).
As the chart suggests, the index has been deeply negative for the past month, which indicates that the US market is now selling Bitcoin more aggressively. As long as this metric remains negative, the correction can be expected to continue.
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2025-01-13 16:44