Tuesday, February 27, 2024

Bitcoin Price Prediction as $8 Billion Trading Vol Comes In – Is the BTC Sell-Off Finally Over?

The future value of Bitcoin has become a hot issue among traders and investors in light of a remarkable $8 billion increase in trading volume. 

Could this be the end of the recent sell-off in Bitcoin, according to the rush of speculation created by this surge? 

This Bitcoin price prediction examines several price trajectories and considers whether the recent drop in the value of the cryptocurrency has reached its end.

Unusual Dormancy in the Supply of Bitcoin Signals Strong Hodling During Market Volatility

Recent data from on-chain monitoring company Glassnode reveal a record-breaking degree of inactivity in Bitcoin’s supply.

Approximately 40.083% of the total Bitcoin supply has reportedly been idle for more than three years, which is an unusual occurrence in the history of the cryptocurrency, according to the company’s tweet. 

This shows that some Bitcoin owners have maintained their holdings, undisturbed by the sharp price fluctuations that characterize the Bitcoin market. 

The time that Bitcoin has been sitting in a wallet unopened or untraded is known as supply dormancy. 

The longer this interval, the more dormant the supply will be. Analysts commonly use this statistic to comprehend investor and market sentiment. 

High dormancy levels typically indicate “hodling” behavior, in which Bitcoin owners hold onto their investments despite market ups and downs in anticipation of future value growth.

Bitcoin Price

Technically speaking, Bitcoin has found support at the $26,300 level, thereby arresting its downward trajectory. Its price is currently $26,800.

Once breached, the four-hour chart’s prior support level of $26,800 now acts as a potential barrier for Bitcoin and a resistance level.

Two important technical indicators, the Moving Average Convergence Divergence (MACD) and Relative Strength Index (RSI), currently show an oversold market. 

This suggests a strong possibility of a bullish comeback aiming for $27,800 or $27,500 if Bitcoin sustains above the $26,000 level.

Furthermore, it’s critical to recognize that the 50-day Exponential Moving Average (EMA) establishes a substantial resistance level close to $27,500, demonstrating that the market’s dominant attitude is bearish.

Keeping an eye on the $26,000 level is important since it represents a significant turning point for Bitcoin.

If Bitcoin can maintain its position above this price, it may try to push above the next resistance levels, which are $27,500 or $28,400.

On the other hand, if the negative trend continues, we might anticipate the next support to appear near the 50% Fibonacci retracement level, or $25,300.

Cryptured Team
Cryptured Team
The writers team at Cryptured.com is composed of passionate and experienced journalists who cover the latest developments in the crypto and blockchain space. They aim to provide accurate, unbiased and easy-to-understand news and information for their readers, as well as insights and analysis from industry experts. The writers team is always on the lookout for new and exciting stories that can help the general public learn more about the potential and challenges of these technologies.

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