- In a recent analysis, a renowned crypto analyst sounded the alarm bells as Bitcoin (BTC) fell below a critical supply zone, specifically between $41,200 and $42,400, raising concerns about potential sell-offs.
- This drop has increased worries about potential sales as owners might try to reduce their losses by increasing selling pressure.
- Another warning indicator, including another noteworthy condition, stems from a gap in the Bitcoin futures chart on CME.
Bitcoin price showed a critical decline at the beginning of the week: Will the decline for BTC continue? What’s next? Current data!
Bitcoin Price to Experience Further Declines?
In a recent analysis, a renowned crypto analyst sounded the alarm bells as Bitcoin (BTC) fell below a critical supply zone, specifically between $41,200 and $42,400, raising concerns about potential sell-offs. Using on-chain data from IntoTheBlock, the analyst pointed out that in this risky zone, 1.87 million addresses, holding 730,000 BTC, have accumulated.
This drop has increased worries about potential sales as owners might try to reduce their losses by increasing selling pressure. The analyst warns of a potential drop to the next demand zone, between $37,500 and $38,700, where 1.28 million addresses, holding 553,000 BTC, are located.
However, despite these warnings, a two-sided situation arises. The analyst’s analysis indicates that profitable buyers are concentrated about 7% below the current market levels. In this case, the question arises: Will buyers show interest in a pullback towards $38,700 when owners in losses start selling, and the market reverts to a chaotic state where unexpected “black swan” events are always possible?
CME Gap
Another warning indicator, including another noteworthy condition, stems from a gap in the Bitcoin futures chart on CME, and such gaps are usually expected to be filled, strengthening the likelihood of a descent towards $37,500 as part of a general decline. If history repeats itself, this gap could be filled as part of a bearish move, reinforcing the probability of a descent towards the $37,500 mark. Bulls are holding on tightly, but upcoming challenges could subject their resilience to an unlimited test.
