Bitcoin Record High Reversal: Are Lower Levels on the Way?
Since the price of Bitcoin has failed to hold the $100K mark, there are some concerning indications that a more significant decline is inevitable. Over the past two weeks, the daily price has steadily increased, setting a new record high above $100K. The market has, however, failed to maintain its upward pace in recent days, plunging below $100,000 and even as low as $92,000. A deeper correction toward the $90K level and possibly the $80K support zone could be anticipated in the near future if the market is unable to regain this territory quickly.
Bitcoin’s Price Struggles Amid Weak Network Activity: What’s Next?
The price action appears to be a little more difficult to predict when looking at the 4-hour timeframe. Within an ascending channel, the market has been making higher highs and lows, but it has been rejected from the channel’s higher boundary at the $108K mark. The market momentum has turned negative as a result of the $100K level being breached to the downside and the RSI displaying levels below 50%. However, a swift recovery over the $100K mark and a bullish continuation is still possible because the lower trendline is still in place.
On the other hand, one of the key elements that can support Bitcoin’s worth is its network activity. The chart indicates that throughout the recent upswing and breakout above the $70K zone, the 100-day moving average of active addresses has been swiftly rebounding. It hasn’t yet reached its peak, though, which shows a pronounced discrepancy between network activity and price action. Therefore, Bitcoin may undergo a protracted drop if network activity does not soon reach a new record high and begins to decline once more.
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