Bitcoin price extended its decline on Tuesday as it traded at $93,754 at the time of writing, after having lost 1% on the daily chart. Bitcoin has lost 11.6% of its value in the last week and is down by 4.1% in the last month, signifying a weak upside traction. Also, it trades below key momentum indicators, including the 9-day, and 21-day Exponential Moving Average (EMA), affirming bearish control of the market.
BTC’s downside is exacerbated by decreased ETF performance. The 11Bitcoin ETFs traded in the United States recorded $227 million in net outflow on December 23rd, signaling weakening investor confidence in the asset’s upside potential.
In addition, Bitcoin’s net traded volume declined to -162 BTC in the 24 hours preceding this writing. That shows the number of BTC sold exceeded the number bought during that time frame, signaling weak demand. Therefore, the trend could add downward pressure on Bitcoin price in the near-term.
Meanwhile, IntoTheBlock data shows a significant drop in the number of whale transactions in BTC in the last seven days. Transactions valued at $100k or more stood at 14,557 seven days ago, but declined to 10,748 as of this writing. That signals reducing investor confidence in the coin.
Also, exchange netflows have risen substantially in the last week, adding credence to the bearish sentiment. IntoTheBlock reports that there was a -$220.79 million worth of BTC flow outside exchanges a week ago.
However, that figure has risen to +152.1 million as of this writing, adding up to $372.89 million in BTC inlows into exchanges during that time. This raises the prospect of increased selloff in the coming days, which could add support to BTC price downside.
The pivot mark on Bitcoin price is at $94,750, and the sellers will be in control if resistance persists at that level. Look for the first support at $93,095, but an extended downward momentum could break below that level and test $92,030.
Conversely, buyers will take control if the price moves above $94,750. That could see the first resistance come at $96,290. Breaking above that level will invalidate the downside narrative. Also, an extended bullish control could extend gains and test $97,610.
This post was last modified on Dec 24, 2024, 11:48 GMT 11:48