Bitcoin’s price has shown significant volatility since the start of the month, initially rising by 6% before experiencing a sharp 10% pullback. Despite attempts to reclaim interim highs near $71,500, the cryptocurrency has struggled under bearish pressure. While there’s been a slight uptick in bullish sentiment, the overall trend is expected to continue downward.
Despite the descending market trend, some analysts argue that the anticipated Bitcoin bull run has yet to commence. Glassnode data indicates Bitcoin’s price is consolidating heavily without capitulating. Interestingly, nearly 87% of the circulating supply is currently in profit, reflecting investor sentiment characterized by boredom and apathy. However, short-term technical indicators suggest potential further downside, with projections pointing towards a possible drop to around $62,000.
Notably, analyst Ali highlighted bearish signals from Glassnode, particularly the MVRV ratio and the 1-year SMA. The MVRV being below SMA levels suggests many Bitcoin holdings bought at higher prices are currently at a loss, contributing to heavy distribution near recent highs. This raises questions about a forthcoming pullback, possibly pushing Bitcoin’s price back below $60,000.
Bitcoin is currently testing crucial ascending supports that have historically provided strong foundations since its surge above $50,000. Despite expectations for a bullish breakout after over 100 days of consolidation, the current market setup favors bearish scenarios in the near term.
Increased selling pressure has pushed the price towards testing lower support levels. Technical indicators like RSI are trending towards oversold conditions, while the supertrend band, currently bullish, may soon turn bearish. This could potentially breach ascending supports and target lower levels around $60,500.
A potential rebound initiated by bullish activity could prevent further extended bearish trends for Bitcoin’s price. However, failing such a recovery, the cryptocurrency may face challenges testing yearly lows.
