{"id":141056,"date":"2023-09-01T22:26:51","date_gmt":"2023-09-01T16:56:51","guid":{"rendered":"https:\/\/dripp.zone\/news\/?p=141056"},"modified":"2023-09-01T22:26:51","modified_gmt":"2023-09-01T16:56:51","slug":"btc-price-top-heavy-condition-risk-more-violent-downtrends-crypto-news","status":"publish","type":"post","link":"https:\/\/dripp.zone\/news\/btc-price-top-heavy-condition-risk-more-violent-downtrends-crypto-news\/","title":{"rendered":"BTC Price Top Heavy Condition Risk More Violent Downtrends\u00a0 – Crypto News"},"content":{"rendered":"

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Bitcoin, down 11% in a week, is hovering at $26,000 with limited action to the upside. Short-term holders whose supply was already trading in unrealized loss before last week\u2019s deleveraging event in BTC futures are likely to be confronted by a gloomy future, considering the possibility of declines extending toward $20,000.<\/p>\n

BTC Price Bulls Move To Defend $25k S\/R<\/h2>\n

Without enough momentum, bulls brave enough to stay in the dilapidated market have resolved to defend support\/resistance at $25,000.\u00a0Bitcoin<\/a>\u00a0is back to trading at $25,981, slightly below the pivotal $26,000 following a few days of loss consolidation.<\/p>\n

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$BTC<\/a> #Bitcoin<\/a> Bulls are Defending the 25k S\/R level..!! pic.twitter.com\/nPSDTnNPtj<\/a><\/p>\n

\u2014 Captain Faibik (@CryptoFaibik) August 23, 2023<\/a><\/p>\n<\/blockquote>\n

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Most indicators, including the Relative Strength Index (RSI), show that the path with the least resistance is stuck to the downside, with\u00a0Bitcoin expected to dip further<\/a>. Holding at 20, the RSI is at its lowest level since March 2020, when crypto crashed due to the Covid pandemic.<\/p>\n

Experts believe that BTC price can pull a surprise breakout, considering it launched itself into a bull run from lows around $3,800 to the current all-time high of almost $70,000.<\/p>\n

Nevertheless, the daily chart with the Moving Average Convergence Divergence (MACD) indicator affirms the bearish outlook. The sell signal at hand implies that short positions in BTC may remain profitable until bulls build enough momentum to reverse the trend.<\/p>\n

\"BTC<\/a>
BTC\/USD daily chart | Tradingview<\/figcaption><\/figure>\n

Bitcoin Short-Term Holders Feel The Pinch<\/h2>\n

According to\u00a0on-chain analytics firm Glassnode<\/a>, Friday\u2019s deleveraging event in the BTC futures market saw the biggest single-day sell-off in 12 months. The pain according to on-chain insights, is not over, considering short-term holders had 88.3% of the supply they hold in unrealized loss.<\/p>\n

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Investors who purchased\u00a0Bitcoin as it rallied<\/a>\u00a0to $32,000 are in addition to the supply that was previously in profit, counting losses. The increase in BTC supply facing unrealized loss came as a result of the \u201ctop-heavy market,\u201d a phrase used to describe the situation where investors buy Bitcoin near or above the current market price.<\/p>\n

\"Bitcoin\"Bitcoin<\/a>
Bitcoin short-term holder supply dips into loss | Glassnode<\/figcaption><\/figure>\n

\u201cSharp upticks in STH Supply in Loss tend to follow \u2018top heavy markets\u2019 such as May 2021, Dec 2021, and again this week,\u201d Glassnode opined. \u201cOut of the 2.56M BTC held by STHs, only 300k BTC (11.7%) is still in profit.\u201d<\/p>\n

If short-term holders continue to buy near the top, there is the possibility of the market becoming top-heavy for extended periods. Glassnode believes last week\u2019s fall is one to pay attention to because historical data especially on what occurred in May and December 2021 shows that such a drop is often followed by \u201cmore violent downtrends.\u201d<\/p>\n

Despite the negative outlook of the market, @AltcoinSherpa<\/a>, a renowned trader and analyst encourages investors to stay the course and focus on surviving the bear market.<\/p>\n

He argues that \u201cthe worst of it has already happened,\u00a0$BTC<\/a>\u00a0went from 70k->15k. If you\u2019ve survived this long, don\u2019t fumble the rest of your bag before the bull market truly comes.\u201d<\/p>\n

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John is a renowned crypto analyst and journalist, providing expert insights into both broad and focused aspects of the digital asset market. As a steadfast reporter, he keeps his audience updated with the latest news in the crypto sphere, delving into topics such as price trends, on-chain data analytics, Non-Fungible Tokens (NFTs), Decentralized Finance (DeFi), Centralized Finance (CeFi), and the ever-evolving metaverse. <\/p>\n<\/p><\/div>\n

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The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.<\/p>\n<\/div><\/div>\n<\/p><\/div>\n

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Bitcoin, down 11% in a week, is hovering at $26,000 with limited action to the upside. Short-term holders whose supply was already trading in unrealized loss before last week\u2019s deleveraging event in BTC futures are likely to be confronted by a gloomy future, considering the possibility of declines extending toward $20,000. BTC Price Bulls Move […]<\/p>\n","protected":false},"author":2,"featured_media":141057,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3],"tags":[192,29,198,194,195,199,196,193,197,200],"class_list":["post-141056","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business","tag-blockchain-business","tag-business","tag-coins","tag-crypto-business","tag-cryptocurrency-business","tag-fiat","tag-metaverse-business","tag-nft-business","tag-token","tag-token-business"],"_links":{"self":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts\/141056","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/comments?post=141056"}],"version-history":[{"count":2,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts\/141056\/revisions"}],"predecessor-version":[{"id":147109,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts\/141056\/revisions\/147109"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/media\/141057"}],"wp:attachment":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/media?parent=141056"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/categories?post=141056"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/tags?post=141056"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}