The bitcoin price ran into trouble after reaching the all-time high of $73,800 and fell below $61,000. According to popular analyst Bob Loukas, falling below the $57,000 level would be good for the sustainability of the bitcoin bull market.
Fairly clean path for #bitcoin.
#FOMC strength could mean lows on 60-day timeframe.
If a move lower still to come, this tag of 10dma is where it turns to lower low. Structurally better if it does for bull market sustainability.
Otherwise close >$70k likely go go go time pic.twitter.com/cIXzVupbyE
— Bob Loukas 🗽 (@BobLoukas) March 21, 2024
Two options for the bitcoin price
Bob Loukas, a highly respected technical analysis analyst, sees two possibilities for bitcoin. The first is that we remain at this level after the US central bank rate meeting and show strength.
That would mean that the bitcoin price consolidates here and that we can then resume the bull market in search of higher prices.
If that doesn’t work, there is also a chance that we will fall below the $57,000 level. According to Loukas, that would also not be a problem for the digital currency.
Both the yellow scenarios that Loukas outlines ultimately lead to higher prices for bitcoin. Based on his graph, Loukas seems to predict a price of $81,000 to $88,000 for the bitcoin halving.
Panic selling on the blockchain?
Looking at the on-chain health of bitcoin, there appears to be a “panic selling” on the blockchain at the moment. Decentrader noted on March 20 that the Spent Output Profit Ratio (SOPR) is negative for the fifth time this year.
Yesterday was the first day in quite some time that #bitcoin SOPR was negative…coins net selling at a loss onchain. https://t.co/kL6rdyBVu2 pic.twitter.com/dsUpTddhRq
— Decentrader (@decentrader) March 21, 2024
The SOPR indicator measures the extent to which coins used in transactions pass to the next owner at a profit or loss. Negative scores indicate that more loss-making transactions are happening.
March 20 ultimately scored higher than all bad days since October 2023. At the moment, it is mainly small investors who are selling, while the big boys continue to accumulate.
The small money seems to be taking their profits, probably fearing further declines, while the big money is gearing up for an extended bull run. Who do you think will be right?
Source: https://bitcoinmagazine.nl/nieuws/analist-bitcoin-koers-onder-de-57-000-kan-de-bullmarkt-helpen
