The price of Bitcoin (BTC) continues to signal short-term weakness despite significantly increased demand from institutional investors. Increased profit-taking by short-term investors has reduced the bullish momentum in recent days. Additionally, on-chain analysis provided by Santiment shows that the number of Bitcoin account holders with less than 1 BTC has decreased by 510,000 in the last 30 days.
However, the number of Bitcoin account holders with more than 1,000 units has increased by another 147 in the last four weeks. The approval of spot Bitcoin exchange-traded funds (ETFs) in the United States has helped increase the inflow of money into the Bitcoin industry.
Important Bitcoin Liquidity Levels
Bitcoin price has faced huge short-term resistance around $52,400 in the last few days. As a result, the flagship coin has formed a possible reversal pattern within the four-hour time frame. Notably, Bitcoin price has formed a triple high coupled with a bearish divergence on the four-hour Relative Strength Index (RSI).
According to Crypto Patel, a popular digital asset analyst, if the support level around $50,800 is not held in the coming days, Bitcoin price is likely to fall towards $47,718.
Otherwise, if Bitcoin price closes consistently above $52,800 in the coming weeks, bulls would continue to push towards the all-time high, the crypto analyst pointed out.
Impact on the off-season
Bitcoin's short-term uptrend is threatened by increased demand for altcoins as crypto cash rotation continues. The rise of Ethereum (ETH), BNB and AI crypto tokens has accelerated Bitcoin’s crypto cash rotation.
As a result, Bitcoin price is likely to continue to witness a parabolic bullish rally following the upcoming halving.
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