As Bitcoin’s price continues to fluctuate, analysts have suggested that the coin may touch the $25,000 mark in the near term. This prediction is based on an assessment of the coin’s Coin Days Destroyed (CDD) on a 21-day moving average, which tracks the number of coins that have been inactive for a certain period of time and then suddenly moved.
According to CryptoQuant analyst Baro Virtual, BTC has enjoyed three periods of local accumulation after which a period of local distribution began. Local distribution occurs when investors take to selling their holdings, causing the price of an asset to either stagnate or decrease slightly. Although BTC lingers in this phase, it is still moving within a local uptrend. However, the danger of falling to $24,500-25,000 remains within the bearish H&S pattern.
Another pseudonymous CryptoQuant analyst, Abramchart, has identified a new support area after BTC’s fall from the $30,000 price mark. According to him, the closest support area is at 25619, which represents the average purchase price of wallets that bought Bitcoin within the last 3-6 months.
At press time, BTC is exchanging hands at $27,579.73. After the coin’s price peaked at $30,967 on 14 April, it has since dropped by 11%. On a daily chart, the coin’s momentum indicator Relative Strength Index (RSI) rested below its 50-neutral spot at 42.44. In a downtrend at the time of writing, selling pressure exceeded accumulation.
The coin’s Chaikin Money Flow (CMF) was spotted below its centerline at -0.02. When an asset’s CMF returns a negative value, it means that the selling pressure is higher than the buying pressure. It also suggests that the asset’s money flow volume is decreasing, and is often followed by a price decline.
In conclusion, as Bitcoin’s weighted sentiment lingers in the negative territory, analysts suggest that the coin’s price could fall below $25,000 as long as bearish sentiments remain in the market. The identification of new support areas and the coin’s current momentum indicators suggest that BTC may continue to experience selling pressure and a possible price decline. However, as with all cryptocurrency predictions, the market is volatile and subject to change, and investors should exercise caution when making investment decisions.
