After a few days below the middle class in the $ 50,000 zone, Bitcoin has gone down. At the time of writing, BTC is trading at $ 54,137 with a sideways movement on the 1-hour chart and is approaching correction levels on the 24-hour chart. Certain indicators point to a stronger devaluation, at least in the short term.
BTC with moderate losses in the daily chart. Source: BTCUSD Tradingview
The crypto market appears to be reacting negatively to statements made by US Treasury Secretary Janet Yellen. The top 10 cryptocurrencies by market capitalization are in the red, with the exception of Dogecoin (DOGE) with a 30% gain on the daily chart and Litecoin with a 3.1% gain at the time of writing. According to Holger Zschhaepitz, the hit was just as painful on the traditional market:
OUCH! Stocks fall and Fear Index Vix bounces on Yellen's interest rate note amid Tech Rout. Treasury Secretary Janet Yellen said interest rates may have to rise at some point to stop the economy from overheating.
Yellen's statements are consistent with the formation of a Doji candle by Bitcoin in the higher time periods (30-day chart). This indicator arises when the price of an asset is opened and closed at the same price, and it usually signals a trend reversal, as the anonymous trader CryptoHamster said. The operator added:
(…) A Doji candle (which usually signals a trend reversal) coincided with the highs and / or reversals of all major indicators. This does not mean that the bull market is over. However, it does mean that it is advisable to set the stop loss order.
Bitcoin investors take profit and the price moves sideways
On-chain analyst Permatoro Niño claims Bitcoin can set a floor price between $ 54,000 and $ 56,000. A retracement to $ 50,000 "doesn't look good" but could act as a critical support zone.
According to the Last 3 Days Realized Gains Metric, a metric used to measure the amount of BTC converted into profit by investors, there were big green values around $ 40,000 and $ 60,000, the analyst said.
Investors take profit and BTC traces. Source: Permatoro Niño
However, the indicator is in a downtrend and could support further appreciation if it continues. Permatoro Niño said:
One thing I always need to remember is that accumulation / distribution is not a single point in time, but rather more than a lengthy period of time. It's pretty clear that we've had one of these periods since early 2021.
Analyst William Clemente pointed to a batch of 3,771 BTC that switched to exchange platforms in the past 24 hours. The transaction took place before the BTC retracement to the current level. In support of the bulls, the analyst checked Bitcoin's Market Value Realized Value (MVRV), a metric used to measure potential local peak values, and said the following:
After resetting for the past few weeks, this bitcoin bull run has plenty of room to run from here.
Source: Glassnode via William Clemente