Bitcoin (BTC) price turns cautious as whales holding between 100 and 1,000 BTC have stabilized their holdings since March 24, indicating a pause in accumulation. At the same time, the RSI dropped from 76 to 69, showing a short-term cooling.
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Furthermore, the EMAs are very close to creating a bearish cross, potentially signaling a bearish trend for BTC. These indicators point towards a cautious stance for Bitcoin's near future.
Slow accumulation of Bitcoin whales
As of March 24, the number of wallets holding between 100 and 1,000 BTC, commonly referred to as “whales,” remained relatively stable, fluctuating slightly between 13,841 and 13,872. This stability shows that these key holders are not currently accumulating more BTC.
Whales are holders of large amounts of cryptocurrencies, with the ability to significantly impact market movements due to the sheer size of their transactions. Their activity is closely monitored as it can provide insight into market trends and potential price movements.
The steady behavior of Bitcoin whales suggests their interest may be waning, which is important in a market driven by sentiment and momentum. This pause in buying may reflect a decline in confidence or a cautious stance on their part.
Such a trend could cause a bearish outlook for BTC in the short term. If other investors believe that whales are losing interest or turning bearish, they may rush to sell. This reaction could start a broader market sell-off.
RSI has decreased
Six days ago, the 7-day RSI dropped from 76 to 69 as BTC price began to stabilize in the range between $68,000 and $72,000.
The RSI serves as a momentum gauge in technical analysis, evaluating recent price movements to determine whether an asset is overbought (above 70) or oversold (below 30).
This means that, at 69, Bitcoin is sitting close to the overbought zone, but its stability in this neutral zone shows a lack of momentum. This is likely to set the stage for a change in market trend in the short term
BTC price prediction: Drop below $60k this week?
BTC's Exponential Moving Averages (EMA) are very close to creating a bearish cross, a pattern often considered a bearish signal for the market. A bearish cross occurs when a short-term moving average falls below a long-term moving average, indicating that recent momentum is weakening relative to the broader trend. This change suggests the market may be shifting from bullish to bearish conditions.
If a bearish cross is formed, BTC price could drop to the nearest support at $62,300. A break of this level will take the price down to $59,200. This potential decline could reflect increased selling pressure and weakening market sentiment towards BTC.
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