Why Bitcoin’s Rollercoaster Ride is the Best Comedy Show of 2023! 🎢😂

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Ah, the eternal struggle of the Bitcoin sellers, those brave souls wrestling with the specter of a decisive support zone, a veritable fortress at the 100-day moving average. One might wonder, is it a support zone or merely a mirage in the desert of despair? A potential breakdown looms ominously, like a dark cloud over a sunlit day, threatening to plunge us into the abyss of the $90K region. How delightful! 😅

Yet, amidst this chaos, heightened volatility is anticipated, as if the market itself were a capricious deity, dictating the next direction with a flick of its wrist. Will it be a dance of joy or a lament of sorrow? Only time will tell, dear reader.

Technical Analysis

By Shayan, the oracle of our times.

The Daily Chart

After a series of unfortunate events, Bitcoin finds itself at a crucial support zone, where demand may emerge like a phoenix from the ashes. This level, oh so important, aligns with the 100-day moving average and the psychological support at $95K. A confirmed breakdown below this hallowed ground could unleash a torrent of selling pressure, sending BTC spiraling toward the substantial $90K support area. What a thrilling prospect! 🎢

On the other hand, should a strong bullish rebound occur, we might witness a recovery, with buyers targeting a retest of the ascending channel’s midline at $100K. Bitcoin, that fickle mistress, remains trapped in a range between $90K and $108K, and a definitive breakout from this purgatory will determine the market’s next grand narrative.

The 4-Hour Chart

In the lower timeframe, Bitcoin’s price action resembles a drunken sailor, choppy and unpredictable, characterized by a phase of low-volatility consolidation. The market participants, bless their hearts, seem utterly indecisive, as the cryptocurrency wobbles within the $90K-$108K range, failing to establish a clear trend. How charmingly chaotic! 😂

The lower boundary at $90K stands as a crucial demand zone, a bastion of support since November 2024. Should the buyers muster the courage to defend this level, we might see another rally toward $108K in the mid-term. However, should they falter, a breakdown below this threshold could expose the price to deeper corrections, like a shipwreck in a stormy sea.

Until Bitcoin decisively escapes this prolonged trading range, traders should remain cautious, for heightened volatility is expected, like a cat on a hot tin roof! 🐱‍👤

On-chain Analysis

By Shayan, our ever-watchful guide through this labyrinth of numbers.

The realized price of UTXO age bands, particularly the 1-3 month cohort, offers a glimpse into the psyche of short-term holders and the overall market sentiment. This metric, a reflection of the average acquisition price of recent buyers, serves as a dynamic support or resistance level, signaling the market’s confidence—or lack thereof. How poetic! 📜

Historically, when Bitcoin tests this level from above, it often acts as support, suggesting that short-term holders remain steadfast in their positions, even amidst elevated price levels. Bitcoin has now declined toward the realized price of the 1-3 month UTXO cohort, hovering around $96K. Holding above this key level reinforces a bullish market sentiment, increasing the likelihood of an extended upward trend. How delightful! 🎉

However, should Bitcoin fail to maintain support at this critical threshold and break below, it could trigger a shift in sentiment toward fear, leading to a distribution phase. Thus, the price action around this level will play a decisive role in shaping Bitcoin’s short- to mid-term trajectory, like a tragic hero in a Dostoevskian novel. 🥲

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2025-02-08 12:03