Renowned Cryptonews trader reveals the reasons why Bitcoin will have a hard time sustaining the recovery. Analyst Daniel Ferraro made an analysis of the possibilities for the price of bitcoin after that fall. The results are laid out in the most recent report by trader Scott Melker.
key prices
For Ferrari, there are three key prices to watch right now: $23,000 as resistance, having become a buy zone of about 828,000 bitcoins in total; $21,000 as possible support; and $19,000 as a possible area to revisit if it fails to sustain strongly at current price levels.
The $23,000 is particularly important, as at that mark is the 200-week moving average. That average has historically been important as a support for the price of the cryptocurrency and its recent recovery seemed to point to a new rise, which has failed for the time being.
Another key is $25,000, which right now has proven to put up a firm resistance for the cryptocurrency.. Since last June 13, when bitcoin fell from $26,500 to $22,400, the market has repeatedly tried to break above $25,000 again. But without success.
The analyst noted that bitcoin’s price action remains “uncertain,” so it’s no surprise how much money traders have lost in the wake of the price drop since Friday.
Ferraro pointed out a possible bullish scenario, in view of the behavior of investors’ accumulation of BTC. As he pointed out in his analysis, the percentage of bitcoins that have not moved between addresses for more than a year is close to its all-time high, from May 2021. Right now, 65.5% of the bitcoins in the network are kept for more than a year. Meaning, people are saving BTC at historic levels in the midst of this bear market.
“This could potentially lead to a top formation and also indicates how buyers following the great mining migration and early 2022 buyers have refused to sell at the lows,” Ferraro said.
In recent days, bitcoin showed weakness in the market. First, he failed to hold onto $24,000. Then, with the drop to 21,000, the outlook seems to worsen and there are those who expect high volatility to return to the market.
Source: Ambito
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