|

Bitcoin Price Prediction: BTC may break below $10,000 if bulls don’t wake up – Confluence Detector

  • BTC has dropped below the 100-day SMA in the daily chart.
  • The daily confluence detector shows an immediate resistance stack between $10,600-$10,700.

Bitcoin bears have remained in control of the market since yesterday, as the price dropped from $10,800 to $10,563 in the time period. The latest candlestick has opened below the 100-day SMA. As before, the price is still trending inside a symmetrical triangle pattern.

BTC/USD daily chart

BTCUSD daily chart

If the price has a bearish breakout from the triangle, the price will drop down to the $9,974.50, as defined by the TD sequential indicator. In the process, the price will finally break below the $10,000-mark. If the sellers break below this support level, it will be pretty catastrophic as the next viable support level is at the 200-day SMA ($9,520). The MACD shows that the market momentum is on the verge of reversing from bullish to bearish, which adds further credence to our pessimistic outlook.

On the flip side, if the buyers manage to have a positive breakout from the triangle, they will take the price up to the $11,950 resistance line, as defined by the TD sequential indicator. However, to make this upward price movement, the daily confluence detector tells us that BTC will first need to overcome a robust resistance stack between $10,600 and $10,700.

BTC daily confluence detector

fxsoriginal

The daily confluence detector is a useful tool that helps us locate strong resistance and support levels. As shown in the chart above, BTC bulls need to overcome the $10,600-$10,700 resistance stack to initiate price recovery.

BTC/USD 4-hour chart

BTCUSD 4-hour chart

The 4-hour BTC/USD chart shows us that the current situation definitely favors the bears. The parabolic SAR has reversed from bullish to bearish. The price is currently sitting on top of the 200-4-hour-SMA curve. If the sellers manage to break below that, the next healthy support lies at $10,535. The only way the bulls can salvage this situation is to push the price up to the $10,800-level and force the parabolic SAR to reverse from bearish to bullish.

Bitcoin on-chain metrics

Let’s look at some charts from Santiment to gain a better understanding of the Bitcoin's overall network health.

Bitcoin 30-day MVRV

fxsoriginal

The 30-day Market Value To Realized Value (MVRV) is a metric that helps us see the average profit or loss of BTC holders in the last 30 days. This metric is based on the price when each token last moved. So, if MVRV is 1.5, then that means the holders have currently made 1.5X their investment. As of now, the MVRV is trending around 1, which shows that the holders have just about broken even on their initial investment. So, despite the bearish price action, the overall sentiment seems to be neutral.

Bitcoin Mean Coin Age

fxsoriginal

The mean coin age (MCA) visualizes the average amount of days that all BTC have stayed in their current addresses. A rising trend in this chart is indicative of a network-wide accumulation phase. As you can see for Bitcoin, the MACD has risen steadily over the last three months. This shows that the long-term holders are strengthening their positions irrespective of the price action.

Bitcoin Exchange Inflow

fxsoriginal

The final metric that we will look into is the exchange in-flow. This chart visualizes the amount of BTC moving daily to exchange wallets, not counting exchange-to-exchange transactions. A spike in the metric signifies short-term sell pressure. The thing to note about the latest bearish price action is that it doesn’t coincide with a large spike in the exchange inflow. This tells us that there is no intense selling pressure dictating this bearish price action, which is a positive sign.

Author

Rajarshi Mitra

Rajarshi Mitra

Independent Analyst

Rajarshi entered the blockchain space in 2016. He is a blockchain researcher who has worked for Blockgeeks and has done research work for several ICOs. He gets regularly invited to give talks on the blockchain technology and cryptocurrencies.

More from Rajarshi Mitra
Share:

Editor's Picks

XRP and XLM outlook: Mild recovery attempts emerge amid mixed market signals

Ripple and Stellar show mild signs of recovery on Thursday after extending losses earlier this week. XRP is holding above the $1.10 level as bearish momentum begins to fade, while XLM has bounced modestly from a key support zone.

Crypto Overview: Bitcoin consolidates above $60,000  – CRV, WLFI, XMR lead gains

The broader cryptocurrency market maintains risk-off sentiment as Bitcoin lingers above $62,000. The mild recovery in BTC fails to lift the Fear and Greed Index, which at 15 continues to signal extreme fear among investors. Still certain altcoins, Curve DAO, World Liberty Financial, and Monero, have emerged as top performers over the last 24 hours.

Bitcoin faces further downside risk amid growing short-term holder losses, weak ETF demand

Bitcoin's recent decline toward the $60,000 level has pushed the market further into bearish territory, with new investors suffering huge unrealized losses, according to a Glassnode report on Wednesday. The firm noted that Bitcoin's earlier May rally now appears increasingly as a "bear bounce".

CFTC proposes framework to review terrorism, war, assassination-related contracts on prediction markets
The Commodity Futures Trading Commission (CFTC) on Wednesday proposed amendments to Regulation 40.11, seeking to establish a formal framework for reviewing prediction market contracts. The proposed framework targets contracts linked to terrorism, assassination, war, gaming, or conduct that is unlawful under federal or state law.
Bitcoin: After the bloodbath, everyone looks at $60,000
Bitcoin (BTC) hovers above $62,000 at the time of writing on Friday, weighed down by growing risk-off sentiment due to persistent geopolitical tensions in the Middle East and sticky macroeconomic uncertainty. The institutional sell-off continued to wreak havoc on capital flows, with spot Bitcoin Exchange-Traded Funds (ETFs) recording billions in outflows.