💥 Why is Bitcoin "stuck" below $60,000?
Bitcoin has been stuck in the important price zone between $57,800 and $61,815 for the past week. In particular, the 50-day SMA has become a strong resistance at $61,662. Here are the main reasons:
1/ Weakening demand for Bitcoin spot. According to Glassnode, the cumulative volume Delta (CVD), which represents the net balance between Bitcoin spot buys and sells, has been recording continuous selling pressure since BTC reached its ATH on March 14, 2024.
2/ Bitcoin price is below the 50-day SMA. On August 5, 2024, Bitcoin first broke through the important support, which is also the 50-day SMA. This negative price situation is related to the Japanese Yen carry trade event and the fear of a global economic crisis.
Instead, BTC price is trending to form a Death cross between 50MA and 200MA. This is a relatively negative signal for the market in the short term. Thus, we may have to face a few weeks of Bitcoin sideways and wait for the 50MA to increase to hope for a better outlook.
There is a small positive news that Bitcoin whales have been buying large volumes at prices below the 50MA line, according to Material Indicators.
