Bitcoin

Momentum

Reserve

Daily

<p>Bitcoin’s price has been showing a willingness to drop lower. However, market fundamentals point to something different.</p>
<p>BTC is down by nearly 10% in the past week, currently struggling to remain above $58,000.</p>
<h2 id="technical-analysis">Technical Analysis</h2>
<p>By <a href="https://tradingrage.com/" data-wpel-link="external" target="_blank" rel="noopener noreferrer nofollow">TradingRage</a></p>
<h3 id="the-daily-chart">The Daily Chart</h3>
<p>On the daily chart, the asset has been consolidating around the $60K level, following a rejection from the $64K resistance line and the key 200-day moving average, which is located around the same price mark. The market is currently probable to test the $56K support level.</p>
<p>The RSI indicator has also dropped below the 50% level, indicating a slight bearishness in momentum. Therefore, if the $56K level is not able to hold the price, a further decline toward the $52K support zone would be expected.<a href="https://cryptopotato.com/wp-content/uploads/2024/08/BTCUSDT-Daily-Aug-31-2024-scaled.jpg" data-wpel-link="internal" rel="noopener noreferrer nofollow"></a></p>
<h3 id="the-4-hour-chart">The 4-Hour Chart</h3>
<p>Looking at the 4-hour chart, it is evident that the market has failed to rise back to the $68K resistance level, which it dropped from initially, as the $64K resistance zone has rejected the price to the downside. As things currently stand, a retest of the $56K level seems highly probable.</p>
<p>Yet, the cryptocurrency might be able to rebound from the level, as the market structure is showing signs of weakness in the bearish trend.<a href="https://cryptopotato.com/wp-content/uploads/2024/08/BTCUSDT-4H-Aug-31-2024-scaled.jpg" data-wpel-link="internal" rel="noopener noreferrer nofollow"><img class="aligncenter size-full wp-image-357304" src="https://cryptopotato.com/wp-content/uploads/2024/08/BTCUSDT-4H-Aug-31-2024-scaled.jpg" alt="" width="2560" height="1307" srcset="https://cryptopotato.com/wp-content/uploads/2024/08/BTCUSDT-4H-Aug-31-2024-scaled.jpg 2560w, https://cryptopotato.com/wp-content/uploads/2024/08/BTCUSDT-4H-Aug-31-2024-300x153.jpg 300w, https://cryptopotato.com/wp-content/uploads/2024/08/BTCUSDT-4H-Aug-31-2024-1024x523.jpg 1024w, https://cryptopotato.com/wp-content/uploads/2024/08/BTCUSDT-4H-Aug-31-2024-768x392.jpg 768w, https://cryptopotato.com/wp-content/uploads/2024/08/BTCUSDT-4H-Aug-31-2024-1536x784.jpg 1536w, https://cryptopotato.com/wp-content/uploads/2024/08/BTCUSDT-4H-Aug-31-2024-2048x1046.jpg 2048w, https://cryptopotato.com/wp-content/uploads/2024/08/BTCUSDT-4H-Aug-31-2024-50x26.jpg 50w" sizes="(max-width: 2560px) 100vw, 2560px"></a></p>
<h2 id="on-chain-analysis">On-Chain Analysis</h2>
<p>By <a href="https://tradingrage.com/" data-wpel-link="external" target="_blank" rel="noopener noreferrer nofollow">TradingRage</a></p>
<h3 id="bitcoin-exchange-reserve">Bitcoin Exchange Reserve</h3>
<p>While bitcoin’s price has been going through a lengthy consolidation period over the past few months, investors are wondering whether the market is experiencing an accumulation or a distribution period.</p>
<p>This chart demonstrates the Bitcoin Exchange Reserve metric, which measures the amount of BTC held on exchange wallets. As these coins can be sold quickly, they are assumed to be a proxy for supply.</p>
<p>As the chart suggests, the Exchange Reserve metric has been trending down rapidly since the beginning of the consolidation, indicating that an accumulation phase is happening.</p>
<p>As Bitcoin reserves continue to decline significantly, the chances for a supply shrink, which can lead to a new price rally, are increasing significantly. Yet, the futures market conditions also plays a massive role in price action, and should be considered carefully before drawing any conclusions.<a href="https://cryptopotato.com/wp-content/uploads/2024/08/Bitcoin-Exchange-Reserve-All-Exchanges-2-scaled.jpg" data-wpel-link="internal" rel="noopener noreferrer nofollow"><img class="aligncenter size-full wp-image-357305" src="https://cryptopotato.com/wp-content/uploads/2024/08/Bitcoin-Exchange-Reserve-All-Exchanges-2-scaled.jpg" alt="" width="2560" height="1440" srcset="https://cryptopotato.com/wp-content/uploads/2024/08/Bitcoin-Exchange-Reserve-All-Exchanges-2-scaled.jpg 2560w, https://cryptopotato.com/wp-content/uploads/2024/08/Bitcoin-Exchange-Reserve-All-Exchanges-2-300x169.jpg 300w, https://cryptopotato.com/wp-content/uploads/2024/08/Bitcoin-Exchange-Reserve-All-Exchanges-2-1024x576.jpg 1024w, https://cryptopotato.com/wp-content/uploads/2024/08/Bitcoin-Exchange-Reserve-All-Exchanges-2-768x432.jpg 768w, https://cryptopotato.com/wp-content/uploads/2024/08/Bitcoin-Exchange-Reserve-All-Exchanges-2-1536x864.jpg 1536w, https://cryptopotato.com/wp-content/uploads/2024/08/Bitcoin-Exchange-Reserve-All-Exchanges-2-2048x1152.jpg 2048w, https://cryptopotato.com/wp-content/uploads/2024/08/Bitcoin-Exchange-Reserve-All-Exchanges-2-50x28.jpg 50w" sizes="(max-width: 2560px) 100vw, 2560px"></a></p>
<p>The post <a href="https://cryptopotato.com/bitcoin-price-analysis-btc-loses-momentum-with-possible-price-declines-to-56k-and-52k/" rel="noopener noreferrer nofollow">Bitcoin Price Analysis: BTC Loses Momentum With Possible Price Declines to $56K and $52K</a> appeared first on <a href="https://cryptopotato.com/" rel="noopener noreferrer nofollow">CryptoPotato</a>.</p>

Bitcoin Price Analysis: BTC Loses Momentum With Possible Price Declines to $56K and $52K

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