Bitcoin continues to face strong selling pressure, currently trading at $42,750 after a 7% price drop last week. Despite strong inflows into spot Bitcoin ETFs, Bitcoin’s price did not show an upward trend.
On-chain data provider Santiment reports that Bitcoin, along with other altcoins like Ethereum and XRP, is now in a historically high-risk profit zone, with percentages exceeding the average range of 55% – 75% dating back to 2018.
Bitcoin recently completed a bullish formation known as the “golden cross,” where its 50-week Simple Moving Average (SMA) crossed above the 200-week SMA. This event, seen on the weekly price chart for the first time in a long while, is viewed positively by market enthusiasts for Bitcoin’s future.
Despite the potential long-term bullish market signal from the golden cross, some experts warn that such crossovers are delayed signals since moving averages are based on past data and reflect past price movements. The current golden cross follows a more than 70% rise in Bitcoin’s price to $42,700 over the last four months.
Bitcoin is struggling to break out of the range it has been trapped in below the $43,000 level since January 16. Market participants are disappointed as BTC’s price remains confined below the key resistance point of $43,418, which corresponds to the lower boundary of the chart’s bearish imbalance zone.