bullish

Bitcoin

Impact

when

Material

<p style="text-align: justify">You can also read this news on BH NEWS: <a href="https://en.bitcoinhaber.net/bitcoin-faces-significant-selling-pressure" data-wpel-link="internal" rel="noopener noreferrer nofollow">Bitcoin Faces Significant Selling Pressure</a><br></p>
<p style="text-align: justify">Bitcoin (BTC) is currently trading below $57,000, heightening concerns about potential declines in altcoins. The cryptocurrency has been unable to break through the $61,660 SMA50 resistance for the past week, causing it to fall back to its foundational level. As Asian markets prepare to open, an expected volatility surge could prompt cautious <a href="https://finance.coin-turk.com/" rel="noopener noreferrer nofollow" target="_blank" data-wpel-link="exclude">investors</a> to offload their holdings.</p>
<h2 id="why-is-bitcoin-struggling">Why is Bitcoin Struggling?</h2>
<p style="text-align: justify">The primary issue at hand is a noticeable drop in demand. Glassnode’s data highlights this via the cumulative volume balance (CVD), which tracks the equilibrium between buying and selling. The <a href="https://newslinker.co/how-does-artificial-intelligence-work/" target="_blank" rel="noopener noreferrer nofollow" data-wpel-link="exclude">data shows</a> a distinct net selling pressure, confirmed by the negative adjusted spot CVD (30-day SMA). Analysts note: “The recent failure to surpass the $70,000 region can partly be attributed to weak spot demand, as indicated by the negative adj-CVD. There’s a clear trend towards selling pressure in spot markets, which persists.”</p>
<h2 id="what-is-the-impact-of-the-death-cross">What is the Impact of the Death Cross?</h2>
<p style="text-align: justify">The 50-day moving average, a critical support level, has been breached again amidst the downturn driven by concerns from Japan and fears of a global recession. Noted <a href="https://en.bitcoinhaber.net/bitcoin-and-altcoins-a-glimpse-into-the-crypto-markets-price-predictions" data-wpel-link="internal" rel="noopener noreferrer nofollow">crypto analyst</a> Mags has expressed concerns about the death cross, which is formed when the 50 MA falls below the 200 MA, signaling short-term market weakness. The collapse of FTX has led to the second death cross since September 2023. Mags suggests that reclaiming the moving averages could spark a reversal, similar to prior patterns, leading to a period of volatile price action and potential bullish confirmation.</p>
<p style="text-align: justify">The chart from Material Indicators reveals whale block liquidity demand with the dip below the 50-day SMA. Although whales continue to buy, the demand for liquidity reduces upward cash inflows, leading to market weakness. Experts suggest that for BTC bulls to regain momentum past $65,000, they must bolster bid liquidity above $58,000 to maintain higher trading ranges.</p>
<h2 id="key-takeaways">Key Takeaways</h2>
<p style="text-align: justify">– The inability to break through the $61,660 SMA50 resistance has led to a decline back to foundational levels.</p>
<p style="text-align: justify">– Glassnode data shows a trend of net selling pressure, contributing to the current market weakness.</p>
<p style="text-align: justify">– The formation of a death cross suggests short-term market instability, but reclaiming the moving averages could trigger a positive reversal.</p>
<p style="text-align: justify">– Whale buying continues, yet liquidity demand is hampering upward price movement.</p>
<p style="text-align: justify">– Experts indicate that BTC bulls need to increase bid liquidity above $58,000 to sustain higher trading ranges.</p>
<h2 id="conclusion">Conclusion</h2>
<p style="text-align: justify">Michael Poppe asserts that maintaining the $56,000 to $57,000 levels is crucial for market stability. Investors will be closely watching these key levels and market indicators to gauge future movements in Bitcoin and the broader cryptocurrency market.</p>
<h5><span style="font-weight:bold;font-size:16px">The post first appeared on BH NEWS: </span> <a href="https://en.bitcoinhaber.net/bitcoin-faces-significant-selling-pressure" data-wpel-link="internal" rel="noopener noreferrer nofollow">Bitcoin Faces Significant Selling Pressure</a></h5>

Bitcoin Faces Significant Selling Pressure

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