Is Now the Optimal Time to Seize the Dip at Bitcoin’s $95K Price Level?
Bitcoin [BTC] has recently witnessed a downturn in its price and wallet yields, being valued at $95,397 as of the current moment. This signifies a 3.61% decrease within a 24-hour period and a 1.95% drop over the past week.
Despite attaining an all-time peak earlier this month, Bitcoin’s Market Value to Realized Value (MVRV) metric over 30 days stood at -1.9%. This figure represents its lowest point since the commencement of the bull market last October.
As per Santiment’s analysis, this negative MVRV indication implies that numerous traders made purchases during a phase of high euphoria and are now confronted with unrealized losses.
Santiment highlighted that historically, Bitcoin’s average MVRV has been 0%, showcasing its ecosystem as a zero-sum market. Negative MVRV levels could signify potential buying opportunities since holdings at a loss might indicate undervaluation.
The platform advocates for a dollar-cost averaging (DCA) strategy for traders looking to take advantage of these circumstances.
Essential Levels of Support and Future Price Predictions
Analyzed by crypto expert Ali, the critical support zone for Bitcoin lies between $98,830 and $95,830. Inside this span, more than 1.09 million wallets cumulatively acquired over 1.16 million BTC, rendering it a pivotal area to monitor.
A breach below $96,000 could initiate a descent towards $90,000 or $85,000, based on Fibonacci retracement levels.
Ali also highlighted the ongoing trend of Bitcoin being withdrawn from exchanges, with 74,052 BTC relocated off exchanges solely in December.
This pattern implies a move towards long-term retention, as coins withdrawn from exchanges are less likely to be liquidated.
Market Metrics and Trading Trends
Recent insights from IntoTheBlock reveal heightened engagement in substantial transactions valued at $100,000 or above. On December 18, a total of 26,510 large transactions were documented, just slightly below the weekly peak of 29,140.
Elevated transactions of this nature have been witnessed during periods of volatility, especially in October and November. The consistent volume in such transactions indicates a sustained interest from institutional or high-asset traders.
Address activities display a mixed pattern. Presently, there are 1.66 million addresses in circulation, comprising 370,840 fresh addresses and 894,920 active ones.
However, the past week saw a decrease in new addresses by 7.12% and active addresses by 4.48%, hinting at a probable slowdown in retail involvement during the recent market correction.
Technical Indicators Point Towards a Near-Term Correction
Technically assessing Bitcoin’s status, it is trading above the 9-day and 21-day moving averages, indicating an overarching bullish trend since October.
Nevertheless, the recent MACD crossover revealed the MACD line dipping beneath the signal line. The red histogram signifies a decline in bullish momentum.
The current resistance at $99,644 has led to a minor retreat, implying a likelihood of consolidation or further correction.
Analysts recommend monitoring the support level at $95,000 to assess whether the upward momentum will sustain or encounter additional declines.