Technicals Suggest BTC’s Price Likely To Drop In Next 24-48 Hours

Bitcoin 6 h    Reading time: ~2 m

Glassnode Alerts, an on-chain analytics platform took to Twitter this morning to share that investors have decreased the amount of Bitcoin (BTC) that they hold following the rough week in the crypto market last week. According to the post, the number of BTC addresses holding 1K+ coins has reached a 1-month low.

BTC number of addresses holding 1K+ coins (Source: Glassnode Alerts)

The analysis platform also revealed in a separate tweet that the BTC supply last active for 5+ years reached a new all-time high (ATH) of 28.929%. The previous ATH was recorded on 10 June of 2023, and stood at $28.926%.

Despite the choppy waters in the crypto market, BTC was still able to record a slight 0.20% price increase over the past 24 hours of trading. This meant that the market leader was worth about $25,789.45 at press time.

Consequently, BTC was trading between its daily low of $25,501.84 and its 24-hour high of $26,143.30. Although BTC’s price was trading in the green, the crypto’s weekly performance was still set firmly in the red zone at -5.01%.

Daily chart for BTC/USDT (Source: TradingView)

BTC’s price had dropped towards the key support level at $25,522.06 over the past 48 hours, and continued to trade just above the key price point at press time. Technical indicators did, however, suggest that it would drop below the level in the next 24-48 hours.

The 9-day EMA line was still positioned below the 20-day EMA line after the two lines had crossed bearishly on 1 June 2023. This indicated that BTC was in a short-term bearish cycle and that its price may continue to drop. Should the bearishness expressed by the two EMA lines be validated in the next 48 hours, BTC could flip $25,522.06 into resistance.

This bearish thesis will be invalidated if BTC’s price is able to close the next 2 daily trading sessions above the aforementioned support level. Should this happen, traders and investors may identify a buy opportunity for BTC, which will cause its price to rise above the 9-day and 20-day EMA lines in the following days.

Disclaimer: The views and opinions, as well as all the information shared in this price analysis, are published in good faith. Readers must do their own research and due diligence. Any action taken by the reader is strictly at their own risk. Coin Edition and its affiliates will not be held liable for any direct or indirect damage or loss.


Updated: 06/11/2023 — 15:00

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