U.Today – Traders are closely watching for the development of a mini death cross (the crossover between the 50 and 100 EMA moving averages) as the price falls. It is not as alarming as the crossover between the 100 and 200 EMA moving averages, but it is a signal of a possible increase in selling pressure.
However, it seems that Bitcoin has escaped this bearish pattern and is unlikely to challenge it. After rebounding from important support levels and continuing its upward trajectory, Bitcoin’s price action has shown resilience. The mini death cross scenario has yet to materialize as the 50 EMA is still above the 100 EMA. This suggests that the increased selling pressure that some had anticipated might not appear in the market.
This optimistic outlook is supported by blockchain data. A total of 72% of Bitcoin addresses are in the money, meaning they hold Bitcoin that was purchased for less than its current market value.
This indicates a high degree of investor confidence and potential support levels that could stop further losses. Furthermore, the correlation between volume and price suggests that Bitcoin is receiving a steady flow of capital inflow, which is essential to keep its price levels stable.
Currently, the price is at a critical point of $67,105, where almost 89,000 addresses are in the money, forming a strong support zone. The overall market mood remains cautiously optimistic. Bitcoin’s ability to hold above significant moving averages and support levels suggests that its uptrend may continue despite recent volatility. To see which direction the market may move, traders and investors should closely monitor rapid price changes and on-chain metrics, in order to foresee an increase in selling pressure.
This article was originally published on U.Today
