Most cryptocurrencies, including bitcoin, have been finding it difficult to reach the bottom. It indicates traders are disposing of their digital coins because of fear. Everyone wonders if the decline will continue or the selling has reached the bottom limit.
Bitcoin May Fall a Little More Based on Historical Records
Dylan LeClair, a senior analyst at UTXO Management, said that on the cost basis of networks, investors had last moved bitcoin at the average price of $24,000. The ratio regarding the cost to price has historically flattened below 1.0. As per the metric, bitcoin has to fall a little more to become attractive for the buyers if traders go by its historical records. On the other hand, long-term bitcoin investors are not concerned by recent corrections in the price of bitcoin. They have been withdrawing their bitcoin holding to the cold storage. The illiquid supply of bitcoin has been going up continuously, according to Moskovski Capital’s CEO Lex Moskovski.
Cryptocurrencies Are Reaching Major Support Levels
Not only bitcoin but other prominent altcoins are also reaching their strong support level. Are investors going to buy or will the bears remain in charge? The data indicates weaker demands and higher price levels. The selling started again on January 24. Bears became active and BTC/USDT was pulled down to the intraday low of $34,008 on January 22. The next critical zone remains in $30,000-$28,805. If it rebounds from this space, the bulls are expected to become active and take this price above $39,600
A similar scenario can play across other altcoins