Bitcoin News Today: Bitcoin's Bearish Crossroads: Long-Term Holders Steer Fate of $110K Drop

Bitcoin's price has recently shown signs of increased bearish momentum, with key on-chain metrics and technical indicators suggesting potential for further downside movement. According to the latest data from CryptoQuant, the Spot Taker CVD metric indicates that sellers have been dominating the market, with a recent red bar on the chart signaling significant selling pressure [1]. This trend is supported by ongoing profit-taking following Bitcoin’s recent high, raising concerns about a potential correction [1].

Current price action reflects this bearish sentiment. As of the latest update, Bitcoin traded at $115,076, a 0.65% decline over the past 24 hours. Over the past five trading sessions, the price has dropped 7.35%, and it has fallen 2.35% in the last week [1]. This downward trend is further compounded by a 10% reduction in trading volume compared to the previous day, signaling reduced trader and investor participation [1].

From a technical perspective, Bitcoin’s price is showing bearish signals. AMBCrypto’s analysis highlights the formation of a bearish divergence on the daily chart, as well as a bearish engulfing candlestick pattern, both reinforcing a negative outlook [1]. The asset has lost 7.3% of its value since these patterns emerged. While the Supertrend indicator remains green and below the price, suggesting an uptrend, the broader momentum suggests a potential 4% price decline [1].

On the on-chain front, CoinGlass data reveals that $39.95 million worth of BTC has moved out of exchanges, pointing to accumulation by long-term holders and potentially easing selling pressure [1]. However, Bitcoin remains vulnerable at key liquidation levels. Traders with overleveraged positions are at risk of further price swings if the price moves near the $113,985 support level or the $117,523 resistance level [1]. These thresholds could trigger major reactions on centralized exchanges, especially if the price forms a bearish pinbar candlestick pattern on the monthly chart [1].

Market observers remain cautious as Bitcoin approaches these critical levels. The potential for a price drop to $110,750 or below has heightened the need for traders to monitor on-chain activity and technical indicators closely [1]. With bearish sentiment intensifying and liquidity shifting toward long-term holders, the coming days will be crucial in determining Bitcoin’s near-term direction.

Source: [1] Bitcoin price prediction: Will the correction send BTC below ... (https://ambcrypto.com/bitcoin-price-prediction-will-the-correction-send-btc-below-110000-before-year-end/)