Will Bitcoin prices collide again?

BITCOIN (BTC) recorded $ 83,700 during the early Asian time on March 12 after the market sentiment was slightly improved on March 11 on March 11, reaching the lowest level of $ 76,600.

The BTC/USD faces the rejection of $ 84,000, raising questions about whether the BTC price will fall further over the next few days.

The demand for Bitcoin is still weak

Spot Bitcoin Exchange-Traded Funds (ETF) leaks have played a big role in the decline in BTC prices since the end of February and have exceeded $ 1.5 billion over the last two weeks.

relevant: Why is Bitcoin prices rising today?

Meanwhile, according to the data from the market information company Cryptoquant, Bitcoin’s clear demand is still low, which means a decrease in risk appetite for potential investors.

Must know:

• Clear demand is a difference in change between production and inventory.

• Production refers to BTC mining issuance, and inventory means inactivation for more than a year.

• If production exceeds inventory decrease, the clear demand is weakened.

• After acceleration between November 2024 and December 2024 by President Donald Trump’s victory, Bitcoin’s demand fell from 279,000 BTC from December 4 to 10,000.

• On February 27, Metric changed to negative for the first time since September 2024.

• It is at -93,700 BTC at the time of writing.

• If the trend continues, the price can be lowered as it occurred in July 2024.

• The chart below showed the obvious demand for bitcoin at the same level on July 27, 2024, and then the price of BTC decreased by 30% in August 5, 2024.

But this metrics will not always guarantee more disadvantages in the future. For example, at the end of May 2024 and at the end of October 2024, prices became negative before 7% and 73%, respectively.

Bitcoin evaluation indicators suggest deeper modifications.

The data of the Cointelegraph Markets Pro and TradingView shows Bitcoin Price more than 7% more than the minimum $ 76,600 on March 12.

Despite this rebound, some evaluation indicators are still weak, and according to Cryptoquant, it suggests that deeper correction is possible.

• Bitcoin Bull-Bear Market Cycle Indicator is in the “most weak level” of this period.

• The Bull/Bear market cycle indicator is a momentum metric that measures the difference between the P & L index and the 365 -day moving average.

• For more than 0, the BTC is in the bull market and the value of less than 0 represents the bear market.

• The current value -0.067 is the lowest since the price of Bitcoin has been continuously recovering since May 2023.

• On the other hand, the MVRV ratio Z-score fell below the 365-day moving average, indicating that the rise in the rise in the rising price lost the momentum.

• The MVRV ratio Z-score is a major indicator used to assess whether Bitcoin is overestimated.

“Historically, this level of evaluation indicators informed the start of rapid modifications or the beginning of the bear market.”

Bitcoin Price Bear Flag is a hint of $ 68,400

From a technical point of view, BTC Price is traded in a weak continuous pattern that represents potential modifications in the future.

Core:

• The BTC is traded within the Bear Flag pattern, and if the level of support is not maintained, it indicates the possibility of more disadvantages.

• Bear Flag was developed after Bitcoin fell from $ 92,000 to $ 76,600 on March 6 and 11.

• The integration in the bare flag is traded as a parallel parallel channel for BTC transactions, and today’s fall test includes a $ 82,000 flag test, including the lower limit of the flag.

• This level of failure can cause another price conflict.

• The disadvantage of Bear Flag derived from the height of the previous drop is about $ 68,400, down 17% from the current price.

Meanwhile, encryption analysts say that if the current support area is not between $ 75,000 or $ 78,000, Bitcoin can increase to $ 63,000 lower.

This article does not include investment advice or recommendation. All investment and trading measures include risks, and the reader must do his own research when making a decision.