Right now, investors have little reason to be optimistic about Bitcoin. While the price remains stable around $ 20,000, various on-chain indicators are showing negative signals. However, although the market looks bearish over the longer term, some brief relief could be seen in the coming week.
What the Bitcoin Analyzes Say for the Next Week
The price of bitcoin has not yet exceeded $ 22,000. Meanwhile, various on-chain indicators turn negative. There may be some temporary relief next week, even as the long-term market expects further bears. Meanwhile, there aren’t many signs of recovery to trigger the weekend rally.
According to Santiment, there are now more active unique Bitcoin addresses on the market. We last saw a similar difference in December 2020. This reinforces the expectation for a strong increase. At the same time, BTC broke the previous record of $ 20,000 in 2017. Another encouraging sign was the number of Coinbase withdrawals made by Bitcoin whales. Average Bitcoin outflows on Coinbase have risen to a nine-year high at the time of this writing.
“The market will continue to collapse”
However, it is important to remember that the average deposit in general is also much higher. On the other hand, the miners’ sales increased. Many analysts say the reason for the collapse will be down to the miners. From an impartial point of view, the analyst expects BTC to react as follows.
What levels are Bitcoin price analysts expecting next week?
In this case the term “moon shot” is misused. However, it would still be worth testing the $ 23,030 threshold again. The situation will improve if BTC breaks the current upside barrier (yellow line) where its value is recovering. A drop in the support after a strong rally could cause the support to drop below $ 30,000.
Even though Bitcoin is still around 50% below the ATH level, it has a chance to recoup the losses. The $ 17,000 to $ 20,000 price range has historically been one of the most active trading ranges for Bitcoin. The weekend could be a crucial time to plan for deals, as Bitcoin could change at any time this week. However, it is worth noting that the market is mostly negative and risk management is very important to investors.
Transitional bearish market cycles
The chart below shows how many days Bitcoin has bottomed out after ATH levels. However, as it has seen in the past, BTC has always held the top positions after witnessing a bearish trend.
According to Glassnode, the past ATH duration was 435 days from April 2021 ATH and 227 days from November 2021 ATH. This has placed the current bear firmly in the historical bear norms.
However, the divergence between BTC’s address activity and price marked the most optimistic level since December 2020. Consider this: The number of unique addresses interacting on the network hasn’t declined as much as it seems after a price correction. 70% since then. November.
cryptocurrency.com As we have reported, the difference between active addresses and price was last time so high in December 2020. This shows that a price increase is possible. Additionally, Bitcoin has also recorded significant whale transactions. It just proves that key stakeholders may be passionate about Bitcoin despite FUD and inflation.
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