Bitcoin price faced a sudden decline of 3.35% after reaching a high of $86,496 and is currently trading at $83,369. The drop is attributed to short sellers and profit-taking at a key pivot point. Many traders are anticipating a further drop in Bitcoin’s price, with some predicting levels as low as $80,000 or even $65,000. In light of these predictions, it’s essential to understand the indicators and factors driving this potential downtrend.
Ki Young Ju, the founder of the CryptoQuant platform, has pointed out that the current supply of Bitcoin is surpassing demand, indicating a potential price drop. Additionally, the Network Realized Profit and Loss (NPL) indicator, provided by Santiment, highlights spikes in profit booking by investors, which often precede market tops. The NPL metric is currently showing signs that further downside movement in Bitcoin’s price is likely, with a potential for capitulation or bottom signals.
Crypto traders have also shared their insights and predictions regarding Bitcoin’s price levels. Popular trader “wafxles” has posted a short trade setup with a target of $65,000, suggesting a further decline in price. Another trader, Shinigami, has highlighted key zones for Bitcoin: $80K to $86K for consolidation and $70K to $60K for potential bottom formations. The recent rejection at $86K indicates a potential resistance level, with $80K being a crucial support level to watch for a potential bounce or downtrend continuation.
Investors are advised to closely monitor the $80K level, as it will play a significant role in determining Bitcoin’s price movement. A breakdown could trigger a selling spree, potentially leading to a revisit of $60K levels, while a bounce could signal a recovery rally towards higher resistances. If Bitcoin manages to flip $90K into a support floor, it could spark a bullish rally towards psychological levels like $100K or even all-time highs at $108K. Stay updated on key support and resistance levels to navigate the volatile cryptocurrency market effectively.
