The Bitcoin price continues to face strong selling pressure with a 7% fall over the last week and is currently hovering around the $42,750 level. The BTC price hasn’t given much movement despite the Bitcoin ETFs seeing strong inflows over the last week.
Bitcoin’s Supply In Profit At Risk Levels
Santiment, an on-chain data provider, reports that Bitcoin (83%), along with other altcoins like Ethereum (84%), and XRPLedger (81%) currently exhibit historically high-risk profit levels. These figures surpass their average ranges of 55%-75%, dating back to 2018.
Despite the potential for further cryptocurrency ascent driven by increased exposure from ETFs and positive news, a key indicator for sustained long-term growth would be a drop below 75% of their supplies in profit, according to Santiment.
BTC Forms A Golden-Cross
Bitcoin’s 50-week simple moving average (SMA) has recently crossed above the 200-week SMA, a phenomenon known as the “golden cross.” This event, appearing on the Bitcoin weekly price chart for the first time, is seen by market enthusiasts as a positive signal for asset prices.
The golden cross, indicating a potential long-term bull market, is a concept rooted in technical analysis and traces its origin to Japan. However, some traders caution that crossovers, while considered forward-looking indicators, may be subject to lag, as averages are based on historical data and reflect past price movements. The current golden cross on the weekly chart follows a significant Bitcoin rally of over 70% to $42,700 in the last four months.
BTC Price Action Ahead
Bitcoin struggled to break out of its range, remaining below the $43,000 level on Tuesday. Market participants expressed disappointment as BTC price action continued to be constrained beneath the crucial resistance point of $43,418, representing the lower boundary of a bearish imbalance zone according to the price chart.
Facing resistance at the 50% Fibonacci Retracement level, situated at $43,074 and derived from Bitcoin’s decline between November 2021 and November 2022, BTC encounters a key hurdle. Additionally, the lower boundary of the imbalance zone, spanning from $43,418 to $45,607, presents a second resistance level. Analysts suggest that once this gap is filled, Bitcoin’s price is likely to resume its downward trajectory.