Key Points
- Over a million users bought Bitcoin at $94K, establishing it as a strong support for potential upward movement.
- Despite recent sell-offs, key metrics suggest that a sharp Bitcoin pullback cannot be ruled out.
Bitcoin, also known as BTC, has seen over a million users purchasing at $94K, thus establishing this price point as a strong support for potential upward movement.
However, despite recent sell-offs, key metrics suggest that a sharp pullback cannot be ruled out.
Bitcoin’s Current Status
Currently, Bitcoin is valued at $98K, ahead of key US inflation data (CPI).
This week’s key macro updates, including inflation and labor markets data, could potentially trigger wild price swings.
The market is currently pricing a 25bps interest rate cut.
Potential for Another BTC Crash
Despite the volatility, Bitcoin is still holding the short-term channel, with the $94K aligning with the range lows.
According to BTC trader Skew, there is strong demand between $90K and $95K, suggesting that Bitcoin might have stabilized at these levels, with $97K serving as an equilibrium point.
Blockchain analytics firm, IntoTheBlock, also confirmed strong bid levels above $90K, indicating that over 1.3 million addresses have accumulated Bitcoin in the $94,800 to $97,700 range.
However, a drop below $94K could put these addresses underwater, potentially leading to panic selling and dragging Bitcoin’s price lower.
The NVT Golden Cross metric supports this potential bearish scenario, marking previous local tops and bottoms.
Despite recent pullbacks, Bitcoin may not be out of the woods yet, according to the NVT Golden Cross.
Moreover, the MVRV has recently soared towards an overheated territory, further signaling a likely pullback. This implies that while Bitcoin could still surge above $100K, a sharp pullback cannot be ruled out.
