1. Summary:
Bitcoin traders’ realized losses may have peaked, indicating the end of the current price sell-off. Recent data suggests that the correction is nearly over as Bitcoin approaches a bottom, with analysts predicting a bounce back in price. Despite some divergence patterns indicating a potential deeper pullback, the overall sentiment is positive for a recovery in Bitcoin’s price.
2. Key Insights:
– Bitcoin’s daily chart shows three consecutive red candles, reminiscent of the period before Donald Trump’s US election victory in November.
– Analysts believe Bitcoin’s correction is nearing its end as the cryptocurrency’s price dropped by more than 15% from its all-time high.
– Traders predict a bounce back from the $94,000 range, while others anticipate a potential deeper pullback to $85,000 based on divergence patterns.
– Selling pressure by spot holders has increased, with significant selling activity on Coinbase and a rising volume of realized losses.
– Bitcoin’s mid-term chart shows a bearish break of structure, but a reversal may occur if the daily candle closes above $95,000.
– Despite the bearish sentiment, immediate recovery above $95,000 is seen as crucial for Bitcoin to nullify negative price impacts.
