Analysts fear Bitcoin price correction below $29,000 as BTC decouples with stock markets
- Bitcoin derivatives data reveals that leverage traders are bullish on the asset as it decouples with stock markets.
- Proponents note that 55% of Bitcoin supply is still profitable despite the recent drop in price.
- Analysts identified a descending channel, indicating a bearish phase in Bitcoin price.
Bitcoin price is hit by a slump and dropped below new support levels. The asset is expected to end the week around the $29,000 zone as Bitcoin decouples from stocks.
Bitcoin price continues to plummet, ends the week around $29,000
In the recent crypto market collapse, the Bitcoin price witnessed losses for nearly eight weeks. Analysts fear a BTC price drop below support levels. Volume is a key factor in the Bitcoin price trend, and trade volume has dropped considerably.
While Bitcoin price has consolidated around the $29,000 to $30,000 region, metrics reveal a bearish phase is incoming. The Crypto data intelligence platform Glassnode reveals that the NVT signal, a variation on the NVT Ratio, uses the 90-day moving average of daily transaction volume in its denominator. The signal is used to predict peaks in Bitcoin price.
The signal has recorded its four-year low of 233.9. This is a sign of a bearish phase in Bitcoin price.
BTC NVT Signal
55% of Bitcoin supply is still profitable
Despite the recent Bitcoin price drop below $30,000, 55% of its supply is still profitable. Kripto Mevsimi, a leading crypto analyst on Glassnode, compared Bitcoin price cycles from the 2017 to 2018 top.
It took an average of 151 to 184 days for 55% of the supply to be profitable. Post that, there is a massive drop, and capitulation in Bitcoin. In the 2021-22 cycle, profits have decreased nearly 58% within 213 days, and analysts expect boring price action and capitulation to follow.
BTC previous cycles
Analysts have evaluated the Bitcoin price trend and identified a falling wedge pattern. CryptoVizArt, a leading analyst, has identified a clear Wyckoff accumulation phase and the Bitcoin price is consolidating inside a demand zone.
Bitcoin has continued its downtrend over the past few months, following a drop below the all-time high at $69,000. The recent drop below the key psychological barrier at $30,000 has fueled an extreme bearish sentiment among investors.
Despite Bitcoin price decoupling from stock markets, analysts fear a further drop in BTC.
Author
Ekta Mourya
FXStreet
Ekta Mourya has extensive experience in fundamental and on-chain analysis, particularly focused on impact of macroeconomics and central bank policies on cryptocurrencies.
