- Bitcoin (BTC) price declined to $99,381, with $98,000 as critical support.
- Bitcoin supply on exchanges dropped to a multi-year low, supporting long-term bullish sentiment.
Bitcoin price has dropped to $99,381, reflecting a 1.95% decline in the last 4 hours. Its market cap now stands at $1.97 trillion, maintaining a market cap-to-volume ratio of 2.03%. Trading volume has surged by an impressive 88.19% in the last 24 hours, reaching $40.65 billion.
This sharp increase in volume indicates heightened trader activity and potential volatility in the market. In the past year, Bitcoin wallets holding at least $100 have grown by 25%, surpassing 30 million. Additionally, Bitcoin held on exchanges has dropped to 2.3 million, the lowest in years.
What’s Next For BTC?
Bitcoin faces a significant resistance level at $104,680. If the price breaks above this threshold, the next target could be $110,000, signaling a recovery phase. On the downside, Bitcoin is approaching a crucial support level at $98,000. If it breaks below this, the price could decline further to $95,000, testing the strength of buyers at lower levels.
The Relative Strength Index (RSI) sits at 28.22, indicating oversold conditions. This suggests the market has been under significant selling pressure. However, the RSI’s oversold nature signals that a price rebound could be imminent if buyers regain control. The 14-day RSI average is 48.42, emphasizing that bearish sentiment has recently dominated.
The moving averages show a bearish crossover, with the 9-day moving average falling below the 21-day moving average. This crossover often signals further downside momentum in the short term. Traders should monitor this crossover, as any reversal in the pattern could signal renewed bullish sentiment.
The Chaikin Money Flow (CMF) is currently in negative territory, suggesting weak capital inflows. While Bitcoin is under pressure, the declining supply on exchanges supports a long-term bullish outlook. Tightening liquidity creates the potential for significant price increases once the market stabilizes.
In the short term, traders should closely watch the $98,000 support level. A recovery above $100,000 would strengthen market confidence, while a break below $98,000 could invite further downside risk.
