Bitcoin’s (BTC) price has failed to hold above the crucial $30,000 level, and slid to $29,500 in the last two days. The resultant pressure due to the crypto market crash last week held Bitcoin in a bear hug.
Market analysts and on-chain data indicate that the BTC price could possibly dive to the $27,000 level as Bitcoin is currently forming a bottom. A bearish rejection could be seen at the high levels, continuing to push the Bitcoin (BTC) price downwards.
Bitcoin (BTC) Price In a Bear Hug
Bitcoin is now in a bear market and will rise after a bottom is formed, as explained in a previous article. PlanB, the creator of the Stock-to-Flow (S2F) model, had disclosed in a tweet that the Bitcoin price is forming a bottom for the upcoming bull market.
Moreover, PlanB announced in a tweet on May 18 that the 2-Year Moving Average is approaching the 2-Year Realized BTC price. It indicates the Bitcoin (BTC) price still has to dive a little more before a rally can be seen.
The chart shows the BTC/USD price tends to increase as the 2Y moving average and 2Y realized price lines move closer to each other. After a blue circle is confirmed on the chart, the price is expected to rise from the level.
Interestingly, the Bitcoin (BTC) is currently trading at a low volume as sentiment remains weak. Also, the Bitcoin mempool is empty again, and the unspent transaction output (UXTO) size diminishes, as per PlanB.
According to on-chain data by Santiment, Bitcoin capitulation during the last week saw many idle wallet addresses becoming active again. The Bitcoin Age Consumed metric shows a large number of wallet addresses moving BTC at the $26k-$29k price levels. It indicates the liquidation of assets and investors’ exiting positions.
In fact, WhaleStats had also reported last week of many whale addresses becoming active again after a long period.
Bitcoin (BTC) Price Trades Range Bound Near $30,000
The BTC price remains under pressure as it continues to trade near $30,000. The weak sentiment across the crypto market indicates less interest among investors. At the time of writing, the BTC price is trading at $29,793, down nearly 2.57% in the last 24 hours.
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.