The recent increase in trading volume for bitcoin, which reached an astonishing $8 billion, has spurred considerable discussion about the cryptocurrency’s potential value. Many are speculating as to whether this surge signifies the conclusion of the current decline of Bitcoin.
The unusual amount of dormancy seen in Bitcoin’s supply is a noteworthy phenomenon that lends credence to the idea of a market reversal. According to on-chain analytics company Glassnode, a remarkable occurrence in Bitcoin’s history has occurred when around 40.083% of the total supply has stayed unaltered for more than three years. This shows that a sizable portion of Bitcoin owners, or “hodlers,” have kept their holdings despite the market’s turbulence. Such high levels of supply dormancy are sometimes linked to a long-term conviction in the worth of the cryptocurrency.
Bitcoin’s price is at $26,800 and it has found support around $26,300, thus stopping its downward trend. The prior support level of $26,800 now functions as a possible Bitcoin resistance level, however. Technical indicators like the Moving Average Convergence Divergence (MACD) and Relative Strength Index (RSI) indicate that the market is oversold, indicating a probable bullish comeback if Bitcoin stays above the $26,000 level. Such a comeback would aim for a goal of around $27,800 or $27,500.
Monitoring Bitcoin’s ability to maintain above the $26,000 level is essential since it marks an important turning point. If Bitcoin is able to maintain its position above this point, it may attempt to cross over the $27,500 or $28,400 resistance levels. The next support level to look for would be around $25,300, which corresponds to the 50% Fibonacci retracement level, but only if the negative trend continues.
Traders and investors actively monitor these technical indicators and supply dormancy to comprehend the possible trend of Bitcoin’s price as trading volume soars and its future value remains a hot issue.
