Bitcoin Price Stability and Market Sentiment
- Bitcoin price must maintain levels above $110,000 to prevent additional declines.
- The Taker-Buy-Sell-Ratio has dropped to levels not seen since November 2021, the time when BTC hit its cycle peak.
On Wednesday, Bitcoin’s (BTC) price experienced slight gains, increasing by 0.9% over 24 hours to approximate $111,000.
Several analysts emphasize that the key support level remains at $110,000, which the price needs to maintain in order to avoid a more significant correction.
“BTC is at a make-or-break level,” stated Swissblock in a Wednesday post on X.
The private wealth management firm claimed that Bitcoin’s “lifeline support” lies at $110,000, a level that bulls must retain to keep the bullish trend intact.
Popular Bitcoin analyst AlphaBTC presented a chart indicating that the range between $110,000 and $112,000 is crucial for Bitcoin.
According to the analyst, a four-hour candlestick closure above this range is necessary for the BTC price to potentially rebound; otherwise, a decline to $105,000 could occur.
Currently, Bitcoin’s price is maintaining the $110,000–$112,000 support, described by investor and trader Crypto Storm as “the key battleground,” who further noted:
“Unfortunately for the bulls, several bearish signs suggest BTC could dip below $110,000 in the coming days or weeks.”
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Bitcoin’s price has deviated around 11% from its all-time high above $124,500 reached on August 14, according to TradingView data.
This drop has left investors cautious, “reflecting a perception that the market may be overextended,” stated CryptoQuant analyst Gaah.
The Bitcoin Taker-Buy-Sell-Ratio, a metric that evaluates market sentiment, currently sits at -0.945. A value below 1 indicates that bears are dominating the market, while a value above 1 suggests bulls are in command.
The metric’s current value is below its historical average, showing that sales have continuously surpassed buying.
“This indicates that despite Bitcoin’s recent price increase, the market exhibits pessimism and caution,” Gaah mentioned in a Tuesday Quicktake analysis.
The last time similar numbers were recorded was during the November 2021 peak, when Bitcoin reached the $69,000 mark before entering a lengthy correction period, Gaah explained, adding:
In the meantime, waning network activity, indicated by a 13% drop in the monthly average of change-adjusted transfer volume to $23.2 billion from $26.7 billion, bolsters the bearish outlook for Bitcoin, according to Glassnode.
Nevertheless, as mentioned there are still several bullish indicators. A positive Coinbase Premium and renewed positive flows into spot Bitcoin ETFs have sparked optimism for a potential BTC market recovery.
This article does not offer investment advice or recommendations. Every investment and trading decision carries risks, and readers should perform their own research prior to making choices!
