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Bitcoin Price Needs to Break Above $48k! On-Chain Data Tells a Different Story!

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Throughout the previous week, the entire market has been fairly volatile, but one occurrence sticks out above the others. In less than three hours, the Bitcoin price dropped by as much as 10% to $40,983. The market capitalization of cryptocurrency markets has dropped from $2 trillion to $1.8 trillion. 

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China’s central bank declared all cryptocurrency transactions illegal, thus outlawing digital tokens like Bitcoin. The markets are recovering as of this writing.

Bitcoin Price:

Against the heavy trading volume, Bitcoin (BTC) has found resistance around roughly $40,700. The most likely price action in this instance is sideways trading in the $41,000-$44,500 region. The prohibition on Bitcoin in China has put traders in a state of anxiety.

After China’s ‘crypto prohibition’ declaration led to a BTC price drop to $40,600, Bitcoin derivatives markets shifted from neutral to bearish. If bitcoin confirms $47.5k-$48k as resistance, the bearish break will be confirmed. To turn this around, the bulls must regain and hold above $48k.

Also Read : Who Will Reach 100K First, Bitcoin Price OR Number Of China Bans!!!

BTC supply will not meet demand?

Since April, approximately 2,000,000 BTC has transferred from short-term to long-term holders, according to the firm’s most recent data. The data plainly demonstrates that “supply will not be able to match demand,” according to Glassnode’s Rafael Schultze-Kraft. 

Bitcoin Price Needs

William Clemente, a cryptocurrency analyst, is also looking at new data on Bitcoin’s supply. According to him, BTC’s supply crunch ratio, which measures how much Bitcoin is held by strong versus weak hands, is exhibiting a bullish divergence. 

Clemente points out that the present amount of on-chain activity is comparable to what occurred in June and July, just before the largest digital asset by market capitalization experienced a rise in August.

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Disclaimer : The opinion expressed here is not investment advice – it is provided for informational purposes only. It does not necessarily reflect the opinion of Coinpedia. Every investment and trading involves risk, so you should always perform your own research prior to making decisions. We do not recommend investing money you cannot afford to lose.

Sara K

Sara is steadily working on cryptocurrency evaluations, news, and fluctuations in digital currency prices. She is guest author associated with many cryptocurrencies admin and contributes as an active guide to readers about recent updates on virtual currencies.

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