The current price of Bitcoin (BTC) stands at $59,160, having dropped to $57,701 over the past 24 hours. This week has seen BTC test levels below $58,000 multiple times. Investors are now questioning when the prolonged discouraging price movement will come to an end and which levels they should monitor closely.
What Are the Key Indicators?
Two notable patterns emerge on the weekly BTC chart. Glassnode analysts describe the past five months as a “structurally adjusted downtrend,” indicating a weakness in BTC price momentum. Crypto analyst Skew associates sharp fluctuations in the chart with significant liquidations in futures trading.
Which Levels Should Investors Watch?
Current order books reveal that spot bids are temporarily preventing a more severe decline, but the decreasing spot buying at higher levels is also limiting upward movements. This results in volatile price actions in both directions.
Technically, a formation between a bull and an expanding wedge indicates accumulation between $52,000 and $48,000 could be profitable. Similarly, selling between $62,000 and $67,000 is suggested. Significant price movements will likely occur if BTC breaks either $48,000 or $67,000.
Investor Takeaways
Key insights for investors:
- Monitor the $48,000 and $67,000 levels for possible breakout points.
- Spot bid weakening at higher levels could signal limited upward potential.
- Sharp fluctuations might be an indicator of strong liquidations in futures trading.
- Accumulation zones between $52,000 and $48,000 could offer profitable opportunities.
On the weekly chart, BTC continues to form lower highs rather than testing new highs. The widening gap between the MACD and the signal line suggests a loss series similar to 2018 and 2021. The RSI climbed to 88.47 in March when the spot price hit its all-time high (ATH), then fell to 44 in August.
Bitcoin’s status as a global asset means macroeconomic and geopolitical events also influence its price movements, indicating that investors may face different cycles compared to the past.
BTC and Volume
Reports from CryptoQuant highlight a long-standing decline in volume, often seen during the summer months. Visible Demand, defined as the difference between the daily total Bitcoin block subsidy and the daily change in Bitcoin amounts held for a year or more, has significantly reduced.
“Demand has dropped from a 496,000 Bitcoin 30-day growth, the highest since January 2021, to a current negative growth of 36,000. As demand decreases, prices have also fallen from around $70,000 to $49,000.”