Bitcoin Faces Selling Pressure Despite ETF Inflows
The Bitcoin price has experienced a 7% drop over the past week and is currently hovering around $42,750. This lack of movement comes as Bitcoin ETFs see strong inflows. However, despite the potential for further cryptocurrency growth, there are indicators that suggest a drop in profit levels is needed for sustained long-term growth.
Bitcoin and Altcoins Show High-Risk Profit Levels
According to on-chain data provider Santiment, Bitcoin, Ethereum, and XRPLedger are currently exhibiting historically high-risk profit levels. These figures surpass their average ranges dating back to 2018. Santiment suggests that sustained long-term growth would require these cryptocurrencies to drop below 75% of their supplies in profit.
Bitcoin Forms Golden Cross on Weekly Chart
Bitcoin’s 50-week simple moving average (SMA) has crossed above the 200-week SMA for the first time, creating a “golden cross.” This technical analysis indicator is seen as a positive signal for asset prices and potentially indicates a long-term bull market. However, some traders caution that crossovers may be subject to lag due to historical data calculations.
Bitcoin Struggles to Break Out of Range
Bitcoin continues to face resistance below the $43,000 level and remains constrained beneath the crucial resistance point of $43,418. The lower boundary of a bearish imbalance zone presents another obstacle for BTC. Analysts suggest that once this gap is filled, Bitcoin’s price may resume its downward trajectory.
Hot Take: Bitcoin Price Faces Resistance and Selling Pressure
The Bitcoin price is currently facing selling pressure and struggling to break out of its range. Despite strong inflows into Bitcoin ETFs, the price has remained stagnant. Additionally, Bitcoin and other cryptocurrencies are showing historically high-risk profit levels. While the formation of a golden cross on the weekly chart is seen as a positive signal, there are concerns about potential lag in technical indicators. Overall, Bitcoin’s price action suggests continued resistance and a possible downward trajectory in the near future.
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