- Bitcoin performed bearishly last week after failing to move above $30,000.
- BTC whales added to the continued selling pressure.
Bitcoin [BTC] tried to get above $30,000 not too long ago. However, it has since shown significant weakness after multiple retests of the same level, and last week’s bearish performance is a testament to that.
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The failure to stay above USD 30,000 was an important observation as it supported a rising resistance line. The latter is part of Bitcoin’s rising price pattern since the beginning of the year.
We previously considered the likelihood of Bitcoin falling to a price range of $24,000 where it would retest its YTD support line. Fast forward to the present and the chances of that support retest are now higher.
Bitcoin has posted a bearish performance so far by as much as 13% in the first half of May. It changed hands for $26,929 at the time of writing.
Source: TradingView
If Bitcoin continues at this pace for the next two weeks, the chances of a retest of the rising support line are quite high. The $25,000 price level is of particular interest as it has already shown resistance on multiple occasions. In other words, the same price level represents a significant range of support.
Assessment of prevailing demand for Bitcoin
Whales have the biggest influence on price, so a look at their activity offers some insight into what to expect. On-chain data revealed that addresses with balances equal to or greater than 1000 BTC have shrunk in the past three days.
Source: Glassnode
The above observation suggested that whales contributed to the selling pressure during the press. This further confirmed bearish expectations. Bitcoin’s on-chain volume has also declined significantly over the past five days. As such, more BTC holders were at losses over the past four weeks.
📉 #Bitcoin $BTC Percentage of addresses in profit (7d MA) just hit a 1-month low of 66.432%
View statistics:https://t.co/ik5IkrcQZM pic.twitter.com/B9lpXe7vq0
— glassnode alerts (@glassnodealerts) May 14, 2023
It is now clear that the market is experiencing less confidence hence the liquidity outflow. If the market continues the same trend, there will be more selling pressure, especially from the retail segment if whales continue to sell.
Read Bitcoin [BTC] Price Forecast 2023-24
Unpredictability is one of the key features of the market. Current expectations are overwhelmingly in favor of the bears. However, a bullish surprise could still emerge, but it should be supported by a healthy accumulation of whales.
But that remains to be seen, which is why market conditions at press time continued to indicate that the bulls were sidelined.
