The weekend can be a quiet time for crypto market activity, but there is a growing excitement in the air as crypto trader and analyst Crypto Rover predicts an imminent breakout for Bitcoin (BTC). The anticipation is triggered by the formation of a parallel wedge on BTC’s 3-day chart, which has the potential to break the pattern and establish a new trend. Nonetheless, it’s essential to keep in mind that this potential breakout may offer short-term relief rather than a sustained rally.
In contrast to the potential positive breakout, there is the looming possibility of BTC experiencing a price crash to $25,000. The general market sentiment remains somewhat bearish, with memecoiners being the most active participants, placing significant bets on the crypto market.
However, recent data from crypto analysis platform Santiment paints a different picture among crypto investors. Lately, investors have been buying and withdrawing their coins from crypto exchanges at a rapid pace. Santiment reports that BTC’s circulating supply on exchanges is currently at 5.7%, the lowest level since December 2017 when it first reached the $20,000 milestone. Similarly, ETH’s circulating supply stands at 10.1%, marking its lowest since its inception in 2015. The decline can be partly attributed to ETH holders choosing to stake their coins instead of keeping them on exchanges, in pursuit of long-term profits.
Should the anticipated breakout materialize and move in a positive direction, BTC could climb back above the $27,000 mark. Conversely, if the price breaks below the next support level at $26,300, a sharp drop to the subsequent support level at approximately $25,000 may follow.
Presently, the price of BTC is exchanging hands at $26,924.76, representing a gain of 0.39% over the past twenty-four hours compared to an increase of 0.48% recorded over the prior seven days. It’s worth noting that BTC’s technical analysis (TA) indicators on CoinGape’s price tracker recommend a strong sell position. Their moving averages advise “sell” at level 11 and “buy” at level 5.
In conclusion, while there is talk of an impending breakout for Bitcoin, a potential price crash to $25,000 cannot be overlooked. The market sentiment is somewhat bearish, but the decreased supply of BTC and ETH on exchanges may hint at future bull runs. Investors should conduct thorough market research before deciding to enter the cryptocurrency market, as it carries inherent risks and volatility.
Source: Coingape
