Bitcoin’s recent price movement has been closely watched and traders suspect a possible BTC dump.
Bitcoin’s Price Behavior Post-All-Time High Attempt
During this time, the price has been moving sideways, which means it’s not going up or down much.
This has made some traders worry that there might be a big drop in the price, which is called a BTC dump. The price has found support around $62,000 to $59,500, which are levels where the price might stop falling, according to a method called Fibonacci retracement.
Even though there was hope that Bitcoin’s price would go above $72,000, it didn’t happen. This has made traders worried, and they are watching closely to see what happens next.
One thing that has worried traders is the formation of a pattern called a double-top. This pattern shows that the price might start going down.
If Bitcoin doesn’t go back above $72,000 and starts going down instead, this pattern could cause the price to drop even more, possibly to $58,000.
Another thing that has made traders cautious is a metric called Coin Days Destroyed, which shows that a lot of Bitcoin that hadn’t been moved for a long time is now being moved.
This has happened before when the price was going up, but it could also mean that the market might correct itself, which means the price could go down.
Bitcoin’s price has been uncertain after it tried to reach its highest price ever. Traders are watching closely to see if the price will go up or if there will be a BTC dump.
See Also: Reasons Why The Price Of Bitcoin Today Went Up Above $70,000
Formation of a Double-Top Pattern and Potential BTC Dump
Bitcoin’s recent price movement has made traders worried because it looks like a double-top pattern is forming.
This pattern happens when the price goes up, then comes down, then tries to go up again but can’t go higher than before, making two peaks with a valley in between.
The first peak happened when Bitcoin tried to reach its highest price ever but couldn’t stay there. After this, the price went down a bit before trying to go up again. However, it couldn’t go higher than the first peak, which formed the second peak of the double-top pattern.
The valley between the two peaks is called the neckline, and for Bitcoin, this level is around $62,000. If the price falls below this level, it could confirm the double-top pattern and lead to a big drop in the price, which is called a BTC dump.
Traders are watching the price carefully around the neckline to see if it holds as support. If the price falls below $62,000, it could mean that the double-top pattern is confirmed, and a BTC dump might happen.
Another thing that traders are watching is a metric called Coin Days Destroyed, which shows how much Bitcoin that hasn’t been moved for a long time is now being moved. This metric has gone up recently, which could mean that long-term holders are selling their Bitcoin, which could also lead to a drop in the price.
The formation of a double-top pattern and the increase in Coin Days Destroyed suggest that Bitcoin’s price might drop soon. Traders are being cautious and watching the price closely to see if a BTC dump happens.
See Also: Bitcoins Price Drops as Tons Price Surges By An Amazing 11%
Conclusion
In conclusion, Bitcoin’s price is uncertain after trying to reach its highest price. Traders are worried about a potential BTC dump, especially with the formation of a double-top pattern.
The price has been moving sideways, and if it falls below $62,000, it could confirm the pattern and lead to a significant drop.
On-chain metrics, like Coin Days Destroyed, also suggest a possible market correction. Traders are closely monitoring these indicators to gauge the cryptocurrency’s next move.
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