The Bitcoin price has been undergoing massive price variations since the beginning of the month. After experiencing a 6% rise in the first few days, the star token faced a massive 10% pullback The recent rejection from the interim highs at $71,500 has kept the token under bearish influence and despite a slight rise in bullish sentiments, the trend is expected to flow towards the south.
Despite the ongoing descending market trend, some analysts believe the Bitcoin bull run has not started yet. The data from Glassnode suggests the BTC price is consolidating very hard but not capitulating. Besides, investor sentiment is marked by boredom and apathy but the interesting fact is that nearly 87% of the circulating supply is in profits. However, the short-term price action suggests a potential drop to around $62,000, as technicals have not turned bullish yet.
A popular analyst, Ali, shared the data from Glassnode, which has been flashing fresh bearish signals.
The analyst here considers the MVRV ratio and the 1-year SMA, which has been flashing bearish signals. The MVRV is below the SMA levels and hence a strong breakout below hints towards a significant BTC bought at higher prices, which are now at a loss as a heavy distribution is witnessed at the local top. Does this point towards an upcoming pullback? If yes, will the BTC price plunge back below $60,000?
The BTC price is testing one of the important ascending supports, which has offered a strong base ever since the token surged over $50,000. The flagship token has been consolidating within a range for over 100 days and hence a bullish breakout seemed to be on the cards. However, the current market set-up suggests the bears may play out the trade well in the next few days.
The selling pressure has increased off-let, due to which the price is again testing the lower support. However, the technicals have turned bearish as the RSI is heading towards the lower threshold while the price is testing the supertrend band, which is currently bullish and may soon turn bearish. This may cause the levels to pierce through the ascending support and reach the lower target at around $60,500.
If the bulls manage to trigger a rebound, then the Bitcoin (BTC) price may be saved from an extended bearish action, or else a drop to the yearly lows appears imminent.
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