Bitcoin is viewing some signs of weakness currently as its price drifts down to its basic short-term support level at $11,600. This is the lower boundary of the trading range that it is presently caught inside, with the upper boundary deskbound at $12,000. This range has held stable for the past few weeks, with each visit past the upper boundary of this proving to be fleeting.
Despite this short-term weakness, analysts are noticing that there are a few crucial aspects that propose BTC’s continuing weakening may be short-lived, with additional upside hypothetically being right around the corner. On-chain data appears to support this possibility, as a look at the profitability of investors shows that there is exceptional support just underneath Bitcoin’s current value.
Bitcoin Drifts In The Direction of $11,600 Support As Selling Pressure Inclines
At the period of writing, Bitcoin is trading just beneath $11,700. This marks a noticeable decline from its weekly highs of $12,400 that was set earlier this week when bulls tried to shatter its current trading range. The cryptocurrency’s current dimness has sent shockwaves throughout the aggregated crypto market, with Ethereum now testing its $400 support level, whereas many other altcoins post notable losses. It doesn’t seem that this pullback has overturned the market’s macro strength, with multiple technical factors all signifying that BTC is well-positioned to see some near-term upside. One analyst who trades under the pseudonym “Byzantine General” jagged to these factors, clearing up that neutral funding, an intact ascending triangle, and its ability to set higher lows subsequently the start of August are all positive signs.
He settled that the confluence of all these factors makes this current value action
“feel similar” to the consolidation seen between May and July, adding that it can “only be considered bullish.“
On-Chain Data Displays BTC Is Approaching A Major Support Region
Supplementary boosting Bitcoin’s bull case is the enormous quantity of support that exists throughout the lower-$11,000 regions. Data from the blockchain analytics platform IntoTheBlock shows that its descent may soon start slowing due to this sustenance. The platform’s “Global In/Out of the Money Around Price” indicator discloses that the value region between $11,300 and $11,700 is filled with buying pressure. It likewise shows that selling pressure is mounting amid $11,700 and $12,000, but it’s clear skies in advance for BTC once this region is broken through. Unless sellers garner enough strength to degrade the sustenance that is laced throughout the lower-$11,000 regions, the ongoing decline may prove to be fleeting. As Bitcoin drifts inferior, these vital aspects propose bulls are still in control Bitcoin, presently ranked #1 by market cap, is down 2.95% over the past 24 hrs. BTC has a market cap of $212.57B with a 24-hour volume of $24.58B.